If a bank isn't going to get the money back, do you think they'll make any loans?

True, but higher education is typically a safe loan because students use their degrees to obtain higher-paying jobs. Problem now seems to be tuition is outpacing the salaries of those jobs.

$22 grand of debt for 4 years of school? And that means the parents have forked out another $80K...If they borrowed the funds the Gvt. will take the parent's home.

Someone needs to bust these liberal institutions and cut the fat from these Universities. Tuition keeps rising sometimes double the rate of inflation. It's another public scam to rob tax money in the name of education. Obama would never face that aspect as it funnels bank money back into the expanding government.

These students sign any paper put in front of their face without reading because they trust the school and are told you have to have a college degree. Then they whine about being 100K in debt. Give a business minded person 100K and see what he can do investing that. The return would be better than a liberal arts degree and writing on a piece of cardboard waiting to be arrested by the police.

@Steve so you mean give the money to all those "business-minded" people who took degrees from Harvard and Yale and instead of conyribute innovation to this country they wasted their skills by making a fortune of Wall Street and helping contribute to a global economic meltdown? These same business-minded people who cooked the books at Enron? The same "business-minded" people who played their roles in the S&L scandals of the early 80's. The same "business-minded" people who have now opened thousands of for profit on-line universities that prey on working professionals by sinking them into greater debt with poorly accredited degrees. We blindly look to corporations and "business-minded" folks as the real champions. The main reason our country is in ruins is because less kids come out of college with innovative minds focused on doing things to put us back on top instead of making a killing in the financial sector on paper.

So you can barrow $20,000 for a car pay 0% interest but for College Loans a person has to pay upwards of 9%.Thats Ok .Banks Barrow money from the Fed at .25% interest.There sould be no interest on College Loans for 10 years after a person gets college degree just pay the money back.No cost to anyone and the world will be better

I agree with Dustin, I agree with Terry too; we want our country to be back on top,.with interest in how our country is.
I just want to comment on what Mr McBride said, he said: "it seems odd that we'd continue to encourage folks to take on more 'debt chasing' degrees that may never result in graduates obtaining jobs providing the kind of compensation such investment warrants". I just saw a couple of students from Russia at St Gregory's church festival..they were here taking an intern class; they told me that their government pays for every dime of their college/adult education! See, the difference? You have taken the constitutional right to choose with your statement (thats too much to take on its a right). Also,the money will absolutely be re-paid under the loan terms or the student s face legal penalties..in other words it will be coming back in! Did you know you can still by a can of corn for $.68? Don't forget, things are still good and also that our country has been through hell after Civil War and the Great Depression; it will be good to have everybody learnin' positive regard and concern for like, everybody... Why don't we let Obama "lead" for awhile, eh?

So, what do the students who’s parents paid for all of their education get from the federal government?

Or how about the students who worked their butts off to pay their own way through school by working a full time or up to three part time jobs to do so?

Instead of treating everyone fairly, it seems to me that the President is once again kowtowing to a very select special interest! Message - don't work hard or save up to go to school, get a loan and the fed will help you manage and even erase part of that loan after you complete your schooling. There is no incentive to work hard, save up, or pay for schooling directly yourself anymore. And it totally disrespects and treats unfairly those of us who did with our tax dollars!!!

I’m sorry, but this is a total bunch of you know what!!! Impeach Obama!!!

Do Federal school loans even pay enough for college? Or do they only pay enough if your parents are not "rich." This is the reason why many are in debt for school through private banks. The Federal gov. does not shell out enough to cover most of the tuition if you are middle class, even though personally you are worth zero.

Where is this going? Either the Fed wants to take back lending and hurt the banks or this is all just pandering by the struggling President. If this only covers federal loans who cares how long you get to pay them back, most borrow through a private bank.

What rock do you live under JRH? Do you live in the same world I live in? With all that's happened in this economy who can work 3 jobs to save for school anymore? And if they do? When are they supposed to actually go to school? You look at things thru this 1950's "city on a hill" vision that doesn't exsist. If I was leaving high school and came from a working class family based on the cost to attend UWM I'd be saving up till I was 25 or 26 to go to college. you talk as if you're the only person who pays taxes. MANY of us do and many of us aren't protected from anything by paying those taxes.You find me 10 of these kids who are "busting their butts" to pay for college on their own who won't walk away from school with crushing debt? The parents who paid for their kids to go to school w/o the aid of the government get educated children who are hopefully making a positive impact on society and paying taxes and contributing to their retirement. The bootm line is we can't survive w/o a skilled workforce and that pool can't all afford to pay for college. Everyone who is poor isn't lazy. If so then everyone who is rich is a crook. What many Americans are seeing is no matter if you work hard it doesn't matter because they system won't allow you to get ahead. They are going to gamble your pension away, assualt you with blindingly expensive healthcare costs, ask you to work longer hours for less pay and then ask you to bail them out when they gamble away your money. Wake up JRH

Steve I agree- it's not a decent fix of the problem because it does nothing to address loans through provate banks. The problem is education and the lending that goes along with it has become nearly predatory. You can't get into the job market w/o a degree and the price of degrees are now rising with demand just like every other product. If we are going to turn education into a product instead of a pillar of a strong society then we will continue to lose. It's in the best interest of our country to turn out more highly educated people. We can choose to queeze money out of students and family now or lose money thru a non productive society later. Why not incentivize new graduates to pursue careers in innovation instead of financial markets. Why not promote 2 year associate programs that stress technical skills. We need a beefed up workforce. Not a bunch of broke sociology majors.

I amgoing to be paying my loans off in December).BUT(direct democracy>)..Don't forget that the government money given for research grants is just as important (molecular diagnostics ..and, I remember having a professor tell me that I cannot possibly work and do this... it is a smart idea to decrease costs :living of by reducing the loan repayments a little and I'll tell you why:
From MONEY magazine (sept 2010)(quoted): "Before this time, the wealthy were better "insulated" from recessions; their wealth tended to be concentrated in 2 areas: housing, and the stock market.( So, they were insulated so to speak.) They bounced back quickly from downturns in the economy. It is a fact that this has not happened this time. It is because the lower-income consumers are in such tough shape; Wal-Mart, Dell, Johnson & Johnson, Proctor & Gamble, PepsiCo, and Verizon companies' performance is tied to behavior and spending of 'ordinary consumers'...
These companies then, have been able to BOOST PROFITS through deep cuts in payroll and other expenses. SO, FOR CORPORATE PROFITS TO RISE, ORDINARY CONSUMERS HAVE TO SPEND MORE."(Money magazine, Sept. 2010). Now, I personally cannot say, but the information provided here says that :"putting up more gates won't make it better-(meaning, between the upper and lower classes)- but, opening a few of them might". Don't you think that it is possibly what the plan here has in mind

What we have here is a viscious circle. Tuition rates have no relationship with the reality of learning anything. So universities jack them up at will. No doubt to cover the costs of professors on sabbatical. Higher increases well above the cost of living rates mean folks will borrow more to make up that difference, instead of dropping out. Then the Obama government steps in and takes over student lending, flooding the market with student loans. Awash in cash, universities have no incentive to economize or otherwise reduce costs. Kinda like any other well-funded government operation. Waste begets more waste, and the taxpayers continue to pay. Why aren't the OWS'ers demonstrating the ridiculous cost of college where it deserves to be demonstrated: on the college campus.

I thought of energy costs for the building right away, and one thing about college campuses is the beauty and humanity of the place (landscaping) went up, security dept.needs more for fuel..but anyway, your idea is a very nice plan Mr Hoffa. Maybe the economy will pull out of the downturn and obama can give the tax incentive...I was certain though, that I literally heard President Obama say something on the order of students "not wasting their loans and money" yeah, I did.What is happening is foreclosures and taking of homes..maybe, I dont know 'all' of this, of course, or all, but Im saying the students and graduating students from a college are also people who are at the age to be starting their lives (21, 22, 23, 24 & 25 YEARS OLD). Perhaps the new plan "includes" them as normal consumers and they will also be buying their new homes (after they consolidate their loans they can also pay on a home if they are married).That is what I meant, I think it is a good idea to include the students in a pickup in housing and a pickup in employment.

I think the banks and government would get more money back in the long term by making repayment manageable. They should give students and parents more of a break in interest and when repayments start.

I recently watched a video clip from the Occupy Wall Street movement and a young man was holding a placard that said he had $70,000 in student debt, couldn't find a job, and was now having to move back into his parents' house. Meanwhile the CEO of Bank of America (one of the banks we bailed out because of their criminal mistakes) is still employed and trotting around with a $10mK salary. It's not right.

Oh no you didn't.."over charging minorities is not right nor nice..Did you read: A Short History of Reconstruction?? Oh no, want in on reality?? It "JUST IS" it just happens that way..its called the "disparity" or the proportion of use of non whites ..is that what you mean?/ Nope, it just is ..if it exists at all. AND youre being absurd. I might want to inform or educate you right here..what you just said can go as far as the US Supreme Court. Don't say it again. OKAY?

Okay, that goes both ways. I bet that you don't want to promote or be stuck being involved with women OR minorities! Equal rights and equality boy..to both sides..all the way! I'd say "Frederick Douglass spoke here!" but, you'd probavly say "she's been drinking" or something emotionally driven like that. ha.

When I've asked why college tuition always increases massively in the past I've received the same stock response as I get from the health insurance industry: "In these days of ever-changing technology and evolving society we need the resources to keep up and stay competitive. We have to pay a premium for the people with the top talent so that we can provide the best services possible."

Basically, their argument is the fallacy that cost-saving technology somehow costs much more, and that they need more money to fuel destructive bidding wars for proven talent instead of giving someone else a chance. It comes down to deliberate mismanagement in order to enrich administrators, staff, and suppliers at the expense of the customer.

Cut costs, cut student debt. UC President Yudof and Chancellor Birgeneau ($450,000 salary) have dismissed many much needed cost-cutting options. They did not consider freezing vacant faculty positions, increasing class size, requiring faculty to teach more classes, doubling the time between sabbaticals, cutting and freezing pay and benefits for all chancellors and reforming the pension system.
They said such faculty reforms “would not be healthy for University of California”. Exodus of faculty and administrators? Who can afford them and where would they go?
We agree it is far from the ideal situation, but it is in the best interests of the university system and the state to hold the line on cost increases. UC cannot expect to do business as usual: raising tuition; granting pay raises and huge bonuses during a weak economy that has sapped state revenues and individual Californians’ income.
There is no question the necessary realignments with economic reality are painful. Regent Chairwoman Lansing can bridge the public trust gap with reassurances that salaries and costs reflect California’s economic reality. The sky above UC will not fall

Opinions? Email the UC Board of Regents marsha.kelman@ucop.edu

My son just graduated from college with a 4 year degree. His government loan has an interest rate of 6.80%. Now he has has a $9.00 an hour job, and no current prospects for a higher paying job. His expenses will exceed his income by over $250.00 per month. It was his choice to get the education and take on the debt, but didn't count on the job market being so bad. A lower interest rate would be nice, since the banks are getting money from the fed for ,25% interest rate, and the money I have in the bank gets less than 1%. interest. No reason to charge 6.80% for a government student loan for someone struggling to get by, but by no means should a person get it for free. Perhaps those over priced professors and administrators should take a pay cut to reduce the costs. We don't need to pay for an illegal's college education either.

When did a college education become a "right"? It is possible to attend college without a bit of debt through work-study programs, part-time attendance, or tuition reimbursement through your employer. If a student chooses to borrow money, they need to pay it back. We are already having trouble teaching our youth that there are consequences for every action. We do them a disservice if we make their problems just go away. They need to think through the consequences when making the decision in the first place.
There are many fine alternatives to a traditional college education. My husband, for example, joined the Navy upon graduation from high school. He knew that as the oldest of 5 there would be no money for college. He then attended college on the GI Bill. I myself worked my way through school, and sometimes had to attend part-time if the money was not there for full time. I changed my major so I would be more employable upon graduation, and would be able to afford to work my way through graduate school. Now as my friends are retiring I cannot plan to retire for many years, as we have made the decision to help our child with her education. Our family has made the sacrifices necessary to finance our own educations and that of our child. Why should I also subsidize those that did not plan accordingly?
We need more skilled workers, and college is not the answer for everyone. If you cannot afford a college education, don't go to college.

Just to add something else since I like tying on the interweb. College debt is not all bad. I only have about 8K left at 28 years of age. I could pay it off in full but it isn't bad debt and money is cheap right now. It proved out of the box that I could make regular payments which increased my credit rating which got me a house which got me business/personal loans which got me a whole lot more.

This isn't credit card debt in the eyes of lenders.

Well, you knew this was coming. For this to work it has to have some severe restrictions on it:
a) Only for coursework at accredited universities. We cannot continue to subsidize the BS for profit schools that have popped up in the last decade.
b) It has to come with some commitment to the government via unpaid internship or the like after school to pay for this bailout.
c) Have to find a way to restrict the coursework list to majors that have some value in today's business environment. If you want your pre-Columbian Era Lesbian Studies degree you are going to have to foot the bill yourself. I know this restriction will be very hard to implement.

More government handouts, sigh. Please understand that the folks footing the bill for these handouts are getting REALLY ANGRY. We'll vote accordingly, both politically and financially.

Oh and:

d) State schools only. We can't subsidize private universities where the cost is 3+ times the cost of state schools.

The reason why college education cost is skyrocketing is that the federal goverment is footing the bill. Eliminate all public loans period. Almost no one can afford $25K a year without public loans. Colleges and Universities will be forced to cut costs and lower tuition. This is very similar to healthcare. In both situations, individuals are buying a product without actually paying the expense. In college, the grab loans and then expect uncle sam to forgive them. So taking on $100K of loans in hopes of getting a $25K annual salery makes sense to them. This is similar to healthcare. Since the insurance company is going to pay most of the bill (for those non HDHP/HSA plans); people request the fancy hospital, Milwaukee Bucks ortho pods, surgery vs physical therapy, etc. They don't realize or care that the cost will be spread to all in higher premiums in the future. Imagine if you were to go car shopping and your fellow citizens would pay the cost (through taxes or insurance premiums). What type of car would you buy? Would you expect that everyone should have accesss to that same car? Of course. Then everyone will complain about the rising cost of the taxes/premiums everyone is paying that fund everyones purchases of luxury cars. There are only two options to control costs. Marketplace controls or rationing. Expanding goverment loan programs and forgiving loans for college eduction will make the problem worse.

Since 1980, college tuition has gone up 600%. 85% of college grads go back home to live with their parents. YES!! Something needs to be done to stop this economic/educational rape. But that would take regulation which is what some of you are so against. Who do you expect to rein in these campuses?? Someone on THEIR accounting staff??

Absolutely something needs to be done about the skyrocketing tuition. And interest on an education should NEVER be more than a car!! Why are so many people so anti-intellectual? Why does knowledge scare you so much??

As I have said before - people should not be pushed into college. There needs to also be more emphasis on tech schools and apprenticeships. But that doesn't equal devaluing a 4 year education. I think if more people had the opportunity to attend classes where debate, insight and critical thinking flourished - we may all be a little more adaptable and innovative.

UC Berkeley steals from our children. Current pay increases for generously paid University of California Faculty is arrogance. Instate tuition consumes 14% of Ca. Median Family Income!
UC Berkeley (ranked # 70 Forbes) tuition increases exceed the national average rate of increases. Chancellor Birgeneau has molded Cal. into the most expensive public university.
University of California President Yudof and Chancellor Birgeneau($450,000 salary) have dismissed many much needed cost-cutting options. They did not consider freezing vacant faculty positions, increasing class size, requiring faculty to teach more classes, doubling the time between sabbaticals, cutting and freezing pay and benefits for all chancellors and reforming the pension system.
They said such faculty reforms “would not be healthy for University of California”. Exodus of faculty and administrators? Who can afford them and where would they go?

235301 - I have often wondered if they still allow people to audit classes. I would like to do that just for the knowledge gained. But fact is, many living wage positions require a degree...even if it has nothing to do with the job. I can have the same knowledge, but wouldnt get hired. So either college tuition needs to decrease or job creators need to be more open minded about the hiring requirements.

University of California steals from our children. Current pay increases for generously paid University of California Faculty is arrogance. Instate tuition consumes 14% of Ca. Median Family Income! .
University of California President Yudof and Chancellor Birgeneau($450,000 salary) have dismissed many much needed cost-cutting options. They did not consider freezing vacant faculty positions, increasing class size, requiring faculty to teach more classes, doubling the time between sabbaticals, cutting and freezing pay and benefits for all chancellors and reforming the pension system.
They said such faculty reforms “would not be healthy for University of California”. Exodus of faculty and administrators? Who can afford them and where would they go?
We agree it is far from the ideal situation, but it is in the best interests of the university system and the state to hold the line on cost increases. UC cannot expect to do business as usual: raising tuition; granting pay raises and huge bonuses during a weak economy that has sapped state revenues and individual Californians’ income.
There is no question the necessary realignments with economic reality are painful. Regent Chairwoman Lansing can bridge the public trust gap with reassurances that salaries and costs reflect California’s economic reality. The sky above UC will not fall

Opinions? Email the UC Board of Regents marsha.kelman@ucop.edu

UC Berkeley:Paying more for higher education is not a better education. Every qualified California student should get a place in University of California system. That's a desirable goal for a public university. However, UC Berkeley Chancellor Robert Birgeneau displaces Californians qualified for education at Cal. with $50,600 tuition Foreigners.
UC tuition increases exceed the national average rate of increase. The University of California Board Of Regents jeopardizes Californians attending higher education by making UC the most expensive public university in the United States.
Self-serving tuition increases are used by UC President Mark Yudof to increase the pay of 80,000 eligible faculty and others. Payoffs like these point to higher operating costs and still higher tuition for Californians. Instate tuition consumes 14% of Ca. Median Family Income!
I agree that faculty in higher education and senior management, like Yudof and Birgeneau, should consider the students' welfare and put it high on their values.
Deeds unfortunately do not bear out the students' welfare values of campus senior management and the UC Board of Regents.
Opinions to UC Board of Regents, email marsha.kelman@ucop.edu

Nobama buying off the teacher unions again. Students are just slaves to them. Its one off the biggest rip offs every pulled. It ain't for the kids... its to line the school systems pockets.....again :(