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GDP and Debt
- Thread starter therealUT
- Start date
It is not in the least unethical. Also, they would not have to suspend the program, they would raise the interest rates. Also, you need to understand that the more people that take student loans, the more money the program receives (as you must repay the student loans.) These programs actually lose money when former students pay off the loan as soon as possible. So, by hanging on to the loan through its full maturity, I actually contribute more to future funds for student loans.While I appreciate your candor, its seems somewhat unethical to me. The intent of the program is to help students afford the cost of tuition. If enough people did this they would have to suspend the program because of a lack of funds.
Thank you for questioning my ethics, though. Next time you do, try not to be so ignorant in going about it.
It is not in the least unethical. Also, they would not have to suspend the program, they would raise the interest rates. Also, you need to understand that the more people that take student loans, the more money the program receives (as you must repay the student loans.) These programs actually lose money when former students pay off the loan as soon as possible. So, by hanging on to the loan through its full maturity, I actually contribute more to future funds for student loans.
Thank you for questioning my ethics, though. Next time you do, try not to be so ignorant in going about it.
I hope your not suggesting that the purpose of this program is to simply loan college students money, and not to help them pay the cost of tutition and housing.
While your in school, the govt pays the interest accumulated on your loans until you graduate and begin paying interest. They aren't simply interest free loans without a cost to the govt to make.
The ethics you use are similar to what others use to justify taking advantage of any govt program, for example welfare. The intent of the program is to help people in poverty. Instead people capable of working and being self sufficient apply for welfare with the justification that if the govt allows them to participitate it makes it ok. Its not ethical.
Not all student loans are government loans. There are plenty of private lenders out there. Mine were private, so I was not in the least taking advantage of any government program. Also, do not compare this to welfare. Taking a handout is completely different from borrowing money and returning it with interest. The purpose of student loans is not to help people in poverty, either. It is to provide the funds to students so that they can earn an education and repay the loan, plus interest. It is a revenue generating operation!I hope your not suggesting that the purpose of this program is to simply loan college students money, and not to help them pay the cost of tutition and housing.
The ethics you use are similar to what others use to justify taking advantage of any govt program, for example welfare. The intent of the program is to help people in poverty. Instead people capable of working and being self sufficient apply for welfare with the justification that if the govt allows them to participitate it makes it ok. Its not ethical.
Like I said earlier, if you are going to question my integrity, do it in a less ignorant manner.
The government paid nothing on my student loans.While your in school, the govt pays the interest accumulated on your loans until you graduate and begin paying interest. They aren't simply interest free loans without a cost to the govt to make.
Next, for government loans, the government does not pay down the interest while the student is in school. The interest accumulates, and most government loans that I know of have options in which the students can continually pay down the interest, without paying down the principle, while they are still in school. Or, the same students can let the interest accumulate. So, again, you are about as far from right as you can possibly be on this issue.
Not all student loans are government loans. There are plenty of private lenders out there. Mine were private, so I was not in the least taking advantage of any government program. Also, do not compare this to welfare. Taking a handout is completely different from borrowing money and returning it with interest. The purpose of student loans is not to help people in poverty, either. It is to provide the funds to students so that they can earn an education and repay the loan, plus interest. It is a revenue generating operation!
Like I said earlier, if you are going to question my integrity, do it in a less ignorant manner.
The govt pays the interest on those loans while you are attending college until you takeover payments on the interest and principle at graduation. They also guarantee those loans. It didn't stop accumulating interest until you graduated.
Why was this in the govt's interest to guarantee your loans for securities investments and to pay the interest on those loans while you attend college?
I said it seemed somewhat unethical to me. But since you want to make such a huge issue out of it.
What does the government guaranteeing those loans have to do with me? As long as I do not default on those loans, then it makes no difference.The govt pays the interest on those loans while you are attending college until you takeover payments on the interest and principle at graduation. They also guarantee those loans. It didn't stop accumulating interest until you graduated.
Why was this in the govt's interest to guarantee your loans for securities investments and to pay the interest on those loans while you attend college?
I said it seemed somewhat unethical to me. But since you want to make such a huge issue out of it.
Why is it in the gov't's interest to help finance the education of it's citizens? So, that one day they will have the spending power to put more money into the government and into the economy. Due to my investments, I have much greater spending power than I would have had I not invested. Due to my net assets, I pay higher taxes than those who are in the same income bracket as I am. I am pretty sure that it was in the gov't's best interest for me to have invested that money.
The government paid nothing on my student loans.
Next, for government loans, the government does not pay down the interest while the student is in school. The interest accumulates, and most government loans that I know of have options in which the students can continually pay down the interest, without paying down the principle, while they are still in school. Or, the same students can let the interest accumulate. So, again, you are about as far from right as you can possibly be on this issue.
The only one ignorant here is you.
If you take a loan out in 2001 and graduate in 2005. You begin making payments on that loan in 2005 as if the loan was granted in 2001.
The reason you are allowed to do that is the govt paid the interest on that money from 2001-2005 until you began interest payments. They also guaranteed your loan so it will be at a low interest rate.
If the govt wanted to make money loaning money to students I'm sure they would come up with a better program than this.
Again all these programs work only when people in need use them, when people start abusing them and taking advantage of them, its makes things worse for eveyrone.
All I said is "is seemed somewhat unethical" to me.
You should edit that again, "as if the loan was granted in 2005." Which, by the way, is loan dependent. Even the Stafford Loan, which is federally backed, requires interest payments from the day the student receives the money.The only one ignorant here is you.
If you take a loan out in 2001 and graduate in 2005. You begin making payments on that loan in 2005 as if the loan was granted in 2001.
The reason you are allowed to do that is the govt paid the interest on that money from 2001-2005 until you began interest payments. They also guaranteed your loan so it will be at a low interest rate.
If the govt wanted to make money loaning money to students I'm sure they would come up with a better program than this.
Again all these programs work only when people in need use them, when people start abusing them and taking advantage of them, its makes things worse for eveyrone.
All I said is "is seemed somewhat unethical" to me.
There are plenty of private institutions that provide student loans, which are not in any way government funded. All the student must do is provide some sort of collateral, whether it is a car, house, the rights to their degree, etc.
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