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View Diary: Kudos to Georgetown University Law School (200 comments)

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  •  huh? nt (14+ / 0-)

    "Well, yeah, the Constitution is worth it if you can succeed." -Nancy Pelosi, 6/29/07.

    by nailbender on Mon Nov 16, 2009 at 08:09:32 PM PST

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    •  There's no 'found money' (or free lunch) (0+ / 0-)

      Risk that cannot be budgeted is always shared through insurance.

      Ignorance isn't exactly bliss but some things are better known when they are unknown to start with and pieced together on the way. - WineRev

      by Clem Yeobright on Tue Nov 17, 2009 at 01:51:21 AM PST

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      •  oh, is that how they financed the invasion of (2+ / 0-)
        Recommended by:
        rb608, BYw

        Iraq? I was wondering.

        Student loans are very very profitable.

        Human reason is beautiful and invincible --Milosz, Incantation

        by juancito on Tue Nov 17, 2009 at 02:40:32 AM PST

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        •  Governments can self-insure (but see CA) (0+ / 0-)

          I'm not saying it's right or wrong, I'm just saying that this insurance becomes another expense in the GULS budget that has to be covered. It is fiduciarally inconceivable that it would not be.

          Ignorance isn't exactly bliss but some things are better known when they are unknown to start with and pieced together on the way. - WineRev

          by Clem Yeobright on Tue Nov 17, 2009 at 02:45:41 AM PST

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          •  This diary is not about insurance (8+ / 0-)

            It is about loan forgiveness in return for a certain type of service.  My state has done this for years for teachers.  The federal government has done it for doctors who serve in the military. You are not making any sense.

            Looking back through the Bush years for his Positive Accomplishments is, for me, like picking through my toddler's diaper for the undigested corn. - Thers

            by MadRuth on Tue Nov 17, 2009 at 05:00:37 AM PST

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            •  Of course it's about insurance. (0+ / 0-)

              Where do you think the money will come from to pay the loans? A government can tax its citizens to implement such a program; GULS cannot tax its alumni nor can it tax its students at the time the loans for their predecessors are forgiven.

              Of course Georgetown is paying an insurance company to absorb its risk in this endeavor, and the premiums for that insurance are coming from the students who will be insured, i.e., the current student body. It's neither good nor bad; it just is, and it needs to be acknowledged.

              Ignorance isn't exactly bliss but some things are better known when they are unknown to start with and pieced together on the way. - WineRev

              by Clem Yeobright on Tue Nov 17, 2009 at 05:39:57 AM PST

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              •  So you say (2+ / 0-)
                Recommended by:
                Clem Yeobright, teloPariah

                I'd like to see a link or two to some proof.  

                Looking back through the Bush years for his Positive Accomplishments is, for me, like picking through my toddler's diaper for the undigested corn. - Thers

                by MadRuth on Tue Nov 17, 2009 at 06:34:52 AM PST

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                •  I guess you would respect them more (0+ / 0-)

                  if they made promises like this with no assurance that they could actually keep them when they come due?

                  That's peculiar.

                  Ignorance isn't exactly bliss but some things are better known when they are unknown to start with and pieced together on the way. - WineRev

                  by Clem Yeobright on Tue Nov 17, 2009 at 06:41:32 AM PST

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                  •  I would respect you more (1+ / 0-)
                    Recommended by:
                    teloPariah

                    if you gave a link that proved your point instead of responding to non sequiturs. There are other ways this could be finance other than insurance.  For instance, people could sign up for the program before they received the loans.  If they don't go into public service, the would have to repay the loan in full.

                    Looking back through the Bush years for his Positive Accomplishments is, for me, like picking through my toddler's diaper for the undigested corn. - Thers

                    by MadRuth on Tue Nov 17, 2009 at 06:47:17 AM PST

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                    •  That's not financing. (0+ / 0-)

                      That's wishing on a star. Big difference.

                      Have you ever made a budget?

                      Ignorance isn't exactly bliss but some things are better known when they are unknown to start with and pieced together on the way. - WineRev

                      by Clem Yeobright on Tue Nov 17, 2009 at 06:50:55 AM PST

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                      •  Clem, I have to say that this string (2+ / 0-)
                        Recommended by:
                        MadRuth, Clem Yeobright

                        of comments demonstrates a pretty significant lack of understanding on your part about how a school operates.  Schools give scholarships all the time.  Scholarships are "financed" by tuition payments of other students who don't receive scholarships.  Schools also provide student loans.  If schools decide to forgive the loans, they will need to make it up with tuition dollars of other students (or endowment income or annual giving or other sources of revenues).  Insurance?  I don't see how that comes into play at all.  What insurance company is going to assume the risk that a school decides to forgive loans?

                        •  Not in the school of Finance, are you? (0+ / 0-)

                          Scholarships are part of the budget and allocated every year.

                          This is a matter of risk. No organization carries this level of risk by itself. Even if you as a student would make plans based on a promise about conditions in 10 years, the school will not make that commitment without knowing it can make good on it. That's what risk management is about.

                          Ignorance isn't exactly bliss but some things are better known when they are unknown to start with and pieced together on the way. - WineRev

                          by Clem Yeobright on Tue Nov 17, 2009 at 09:53:53 AM PST

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                          •  Actually, (0+ / 0-)

                            I have more finance experience than you would ever hope to have.  Again, please show me an insurance company that would assume the risk that its insured wouldn't write-off its receivables.  Let me help you.  There aren't any.  

                            I think you might be confusing yourself with a school's credit decision as to whether or not to give credit (not course credit, but credit in the dollars and cents use of the word) to its students.  A school will of course try to manage the risk of defaults and will budget for bad debt expense.  But this is not the type of "risk management" that lends itself well to insurance.  

                            Keep trying though, I'm here to help.

                          •  Why don't I believe you? (0+ / 0-)

                            There is no defined risk that you can't find an insurance company to underwrite.

                            You are interpreting this to be "a school's credit decision as to whether or not to give credit". If that were what Georgetown were doing, I would agree with you, but that's not what Georgetown is doing here. Georgetown is committing to give a well-defined sum of money to each of an unknown number of current students on a defined date 10 years in the future based on defined criteria. The conditions are well-known; the number of persons who will take advantage is not known. And Georgetown does not know what its finances will look like 10 years from now, nor what the U.S. economy will look like.

                            This is the risk that must be managed and is being shared with people willing to assume that risk for them.

                            Ignorance isn't exactly bliss but some things are better known when they are unknown to start with and pieced together on the way. - WineRev

                            by Clem Yeobright on Tue Nov 17, 2009 at 06:35:27 PM PST

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                      •  Yes (0+ / 0-)

                        Have you provided a link?

                        Looking back through the Bush years for his Positive Accomplishments is, for me, like picking through my toddler's diaper for the undigested corn. - Thers

                        by MadRuth on Tue Nov 17, 2009 at 08:51:02 AM PST

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      •  No, it becomes profits. (0+ / 0-)

        If there were competition, what you say would be true.  However, there is very little competition, and insurance firm accounting is totally opaque.

        Would you say the same about oil companies?

        •  No WHAT becomes profits? (0+ / 0-)

          And by the way, the competition among insurance companies is feral.

          Ignorance isn't exactly bliss but some things are better known when they are unknown to start with and pieced together on the way. - WineRev

          by Clem Yeobright on Tue Nov 17, 2009 at 05:41:10 AM PST

          [ Parent ]

          •  I was responding to the comment above mine, (1+ / 0-)
            Recommended by:
            BYw

            (at least the one that was above mine at that time), making the point that insurance company "losses" that are then spread among other clients are not the only way risks are paid for.  As for insurance company competition, it is far from feral.  In many areas, for example health insurance is dominated by one or two players.  At many colleges, students are steered toward one lender.

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