Archive for Wednesday, July 24, 2013

Letter: Banking fiasco

July 24, 2013

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To the editor:

Politicians are defunding public education because their special interest campaign supporters want OUR public education tax dollars in their bank accounts. Voters should be allowed a statewide vote for approval.

Then the U.S. has leveraged buyout artists who somehow manage to obtain loans that buy out U.S. corporations then pile this debt upon the company being pursued by the leverage buyout con men. Then the companies fail under the guise that union wages are too high when, in fact, the objective was to shut down the company and shift jobs to China for bigger and bigger profits. Why are bankers funding this nonsense? This seems counterproductive.

Also the private industry college loan program seems to be operating exactly like the home loan fiasco. Tons of money being loaned to students who have no way to pay back this money. Why are bankers funding this nonsense?

We have citizens getting educated but no jobs are waiting for them like in the good ol’ days. Are the bankers not paying attention? Why are bankers funding this nonsense?

The nation has crooks and bankers loaning out large sums of money to people becoming educated while recording big time profits yet the jobs are leaving the country. Why are bankers funding this nonsense? Why not spend money that restores the job market? Why not loan money more wisely? What is the point in lending money that eradicates U.S. jobs?

Comments

Steven Gaudreau 1 year, 11 months ago

Why do banks give student loans? Because they are govt backed.

"As the economy has shrunk and the cost of college has increased, financial aid has gone up as well. Between 2006-7 and 2009-10, the percentage of first-time, full-time undergraduates receiving financial aid increased from 75 percent to 85 percent at all four-year colleges." --Chronicle of Higher Ed

If there was no student loan program, it appears campuses across the country would be empty. If half of the 80% could not afford college without a loan, we would have about 7,000,000 adults looking for full time employment each year out of high school.

Ron Holzwarth 1 year, 11 months ago

I think that out of that 7,000,000, many would choose to attend community colleges or vo-tech schools, which are a lot less expensive. Actually, in today's world, vo-tech schools look like a better and better value. They don't take a long time to complete, and many of them give their students an education in something that will lead to immediate employment, such as car body or mechanical repair, nurse's aide, aircraft repair, or welding. Just a couple months ago, I looked up vo-tech schools for a young man I know who has no marketable job skills. I was surprised to learn that welding can pay $30,000 to $100,000 per year, depending upon location. Very few four year degrees pay that much!

It's a problem that we've all become brainwashed into thinking that college is necessary for success, but the truth is that what is needed is perseverance in a field for which jobs are available. It really bothers me that vo-tech schools and community colleges are considered by many to be inferior to four year colleges.

oldbaldguy 1 year, 11 months ago

I believe college tution went up as more and more student loan money became available. This began in the 70's. When I went to school I had only one loan for $750 that was a national defense student loan. 50% was forgiven for serving two years of active duty. Tution was $299 a semester flat rate when I graduated in 1974.

usesomesense 1 year, 11 months ago

Unfortunately the banks have found that it's highly lucrative to deal with repossesed homes. When a home loan is defaulted on the banks continue to acrue intrest, penalties, attorney and collections fees until the property is 'auctioned' and the bank buys it from itself at the total amount owed and our government picks up the tab for the difference as a 'loss'. As the economy stabilizes and there are fewer foreclosures they need another method to keep the cash flowing. Enter the government guaranteed student loan program. Private loans that will be defaulted on, fees asessed and interest acrued - and the banks will get every penny - even after the loan goes bad.

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