April 23, 2008

Latest PLUS loans proposal seems illogical!

Posted in Misc at 12:51 PM by Joe From Boston

Senator Christopher Dodd (CT) recently introduced a bill to ensure all families have access to college funding.  One provision appears to reduce or eliminate the need for credit checks.

Now – wait a sec.  Eliminate credit checks???

Perhaps I’m a little slow, but isn’t that what got us into trouble in the first place with mortgages???  People borrowed more than they can afford to repay, right???  And now we’re in a recession because of it.

I admire the sentiment of Senator Dodd, but you can’t honestly tell me that someone with a 450 credit rating can afford to pay back a $20,000 student loan.

Does this seem nuts to anyone else?

If these people default on the loans, then the federal government will have to repay loan companies approximately 95% of the loan.  That means we, as taxpayers will be footing the bill, ultimately.



  1. Couldn’t agree more –

    Nice blog btw

    I also find it ironic that a basis of government that is set up to support comrcial enterpise is doing their very best to shut down these lenders. Its like the fed gov is trying to be the “monopoly” of the financial aid industry.

    I never liked that game.

  2. I couldn’t agree more, True Education. We’ve seen this time and again in other fields, and now students are the ones bearing the burden of bad decisions and bad timing.

    I can’t help but laugh every time I hear a politician say “oh, but last October’s laws wouldn’t have caused all this mess if it hadn’t been for the mortgage crisis. all we did was cut profits”.

    Well, yes, you cut profits. But unlike the Federal government, private businesses MUST make a profit or they will close. And that’s what we’re seeing today.

  3. Sometimes when you stub your toe you do your very best to make sure you hide it. Even though it hurts like heck!!

    Looks like people in congress and the fed gov have stubbed their toe big time! They realize the pain they are in but are doing there very best to not show it.

    This leads to radical and sometime ill advised decision making. Desperate times – desperate actions and all that.

  4. susan said,

    I have one son in college (a sophmore) and another son heading for the fall semester. As I look at the situation, the government enables immigrants are able to have as many children and medical benefits as they please with us footing the bills. Perhaps we can find funding for our children who deserve it by cutting the availablity of medical benefits to the illegals. Let them have their children in their own country or make them citizens and pay taxes. My medical insurance is $ 2000 a month for my family, why shouldn’t they pay their share?

  5. Julie said,

    How can people with poor credit due to no fault on their own because of medical costs, rising gas cost, etc. afford to send their children to college. I am a single parent working 2 jobs. I have fair credit due to my son’s disabilities and I can not get money to send him to college. It is a shame that hard working American citizens are getting screwed and illegal aliens can get all the help they need for their kids. Something has to change!

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