Comments on: Student Loans: A Political Prop http://www.redstate.com/sdemaura/2012/06/07/student-loans-a-political-prop/ Thu, 28 Mar 2013 06:25:43 +0000 hourly 1 By: Dave_A http://www.redstate.com/sdemaura/2012/06/07/student-loans-a-political-prop/#comment-31 Dave_A Sat, 09 Jun 2012 17:58:28 +0000 http://www.redstate.com/sdemaura/?p=116#comment-31 Ever since 2000-or-so the government has been the originating lender for Perkins, Stafford, and PLUS loans….

Not just a garantor… So the schools no longer get a cut…

The issue isn’t making loans dischargable through bankruptcy… It’s getting rid of federal student aid…

The reason that there is no ‘accountability’ in higher ed pricing, is because schools KNOW that if they raise prices the government will just raise aid – ergo, no penalty for pricing absurdity.

Get rid of aid, and a proper, market-based balance between price and volume will be forced to occur (eg, if tuition doesn’t go down or at least stop rising, schools won’t have any students to charge)….

]]> By: norris http://www.redstate.com/sdemaura/2012/06/07/student-loans-a-political-prop/#comment-30 norris Sat, 09 Jun 2012 12:48:03 +0000 http://www.redstate.com/sdemaura/?p=116#comment-30 Whenever student loans become cheaper school fees rise. If the schools held the notes on their own students they could make a percentage to run the program. and keep the government out. If the loans could be discharged through bankruptcy 5 years after graduation the schools would have a real incentive to council student for more courses that will help them earn a living.

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