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No tolerance for students who graduate with


Posted: Apr 24, 2012

“I have very little tolerance for people who tell me that they graduate with $200,000 of debt or even $80,000 of debt because there’s no reason for that."  This is the same Virginia Foxx who is a member of the US House Committee on Education and the Workforce and who chairs the subcommittee of the same name.  Under the jurisdiction of this committee and subcommittee are administration of the Higher Education Act which supports college access for low and middle-income students and helps families pay for college and financial oversight of the US Dept of Education, among others.  IMO, anyone with this kind of attitude toward the people whose interests she is supposed to serve has no business anywhere near this committee.  One can only hope this situation will be rectified in the next session. 

Her voting record shows she has no tolerance for natural disaster victims in need of aid.  She was one of only 11 reps to vote against aid to Hurricane Katrina victims.  She doesn't much care for voter's rights either and was one of 33 GOP reps who voted against the 25-year extension of the Voting Rights Act in 2006.  She's not all that keen on hate crime laws which she deems unnecessary, as was demonstrated in truly tacky comments she made (while Matthew's mother was present) in opposition to the Matthew Shepard and James Byrd Hate Crimes and Preventions Act.  She was one of the loons in the legislature whose over-the-top delusions about government "death panels" were worn on her sleeve. 

GOP couldn't have picked anyone more out of touch than this woman if their lives depended on it. 

;

Not a representative of "the people" - Electing real representatives

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I had to look her up because while this all sounded familiar, I couldn't remember the details. I saw her picture and immediately recalled her from CSPAN. She certainly is in need of being voted out. All of those who are holding back the middle class with their obstructionism and extreme right-wing agendas need to be voted out.

Hopefully the government will once again be there for ALL the US citizens, the middle class working people, and be there to help the poor and disabled and elderly instead of giving tax breaks to the rich and corporations so they can offshore their $$$ and exploit the lower income groups.

Nice to see the left's class warfare agenda - is working. *rolls eyes*

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When are some of you going to realize that it is the rich that invest and the rich who create jobs for the middle and low class people. It is also the rich who contribute most to charities who help those less fortunate. Attacking them won't help us. It is like biting the hand that feeds you. You don't think rich democrats exploit the middle and lower income groups? HA! What a joke! The only reason democrats like the lower income groups is because they know they can buy votes by dangling more entitlement programs in front of them. They don't care that the entitlement programs are one of the reasons why we are so far in debt and will continue to go further in debt because those programs are NOT sustainable no matter how much you tax the evil rich.

Well said! - nm

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nm

no class warfare here - sm

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I don't even understand where your post is coming from. It is not class warfare to criticize a representative who is so woefully out of touch with their constituency. It is, in fact, elitist that Ms. Foxx has "no tolerance" for those who have debt upon graduating from college. She must know a lot of families who have an extra $50,000+ a year to throw around.

Since when is financial aid for higher education an "entitlement program"? Do you hold a mortgage? Would you consider that an entitlement?

Wanting to see the tax code made more equitable for everyone does not mean the rich are evil. This rhetoric about "the evil rich" is just plain silly and unnecessarily polarizing.
Our honorable president left out much of her - comment...big shock
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Remember when you all screamed and yelled about Breibart using only part of Sherrod's speech and yet it is okay for our president to do the same thing? More double standards, huh?

I don't believe Foxx worded her statement wisely but I get her point. There is no reason for people to have to get such high loans for college. Every time financial aid is raised, tuition inevitably goes up as well. Kids shouldn't graduate from college with the debt they do. It is absolutely crazy.

My best friend went to a very expensive Christian college without 1 single loan. She worked her way through college and got a scholarship. My parents didn't pay for my college. I worked to pay for it myself without any loan...as did my husband because his parents couldn't afford it either.

I think many kids nowadays get these loans thinking they don't have to work until after college....and that is lazy, IMO. If some of these kids would work, they wouldn't need as many loans to get them through school.

You cannot compare financial aid and a mortgage. Those are 2 different things.

I don't believe there is anyone on this board who doesn't believe the tax code should be simplified and made fair. We have around 50% of Americans not paying taxes, we have big companies like GE paying little to no taxes, we have some politicians who haven't paid their taxes. The tax code is too complicated and easily abused to get away with not paying taxes for those willing to take the time and find the loopholes, etc. I'm sure we all agree that needs to stop. I guess that is why I like a flat tax. You make x amount of money, you pay x%. Pretty freaking simple. That would eliminate excused of tax evasion and everyone would be paying their fair share.

The only reason we use the "evil rich" is because liberals seem to do nothing but gripe and complaint about the rich. It isn't fair that Romney's dad was rich and passed his wealth onto him. It isn't fair that Ann could stay home with her kids because they are rich. The constant bashing of rich people on this board is obvious....so your "silly and unnecessarily polarizing" comment is just plan silly because it is the left that continues to draw a line in the sand between the rich and everybody else.

One more comment about financial aid, I think it is highly unfair to assume a parent will pay for their kids education. My stepson got very little in financial aid because of my husband's income. His mom is contributing $0 to his tuition and my husband and I (with our 2 other kids and house payment) can only afford to pay a small amount...which won't even cover 1/4th of his tuition. We have also told him that if the economy gets worse, we can't pay anything either. I just don't think they should assume parents are paying for everything. I don't think any parent should give their kid a full ride anyway. I think kids do better when some of their own money is on the line....but, again, the amount of money for tuition, housing and books is absolutely insane.

The point...which was totally missed in the whole thing...is that there is no reason kids can't work their way through school and pay a big chunk without getting so far into debt by not working while in school.
Big shock - Great post
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That's the problem with the entitlement mentality. Those people want all advantages in life with someone else paying for them.

I, too, worked my way through college without one penny in debt. It may have taken me an extra semester to get the courses I wanted, but it felt good not to be saddled with any debt at all. Gives you a real sense of pride to accomplish all that without debt. I also made the Dean's List and made High Honors with 4.0. Most people are just too lazy to expend the effort.

Your post really illuminated those that are so intent on attacking someone else, they don't bother to read. Can you imagine how hateful someone has to be, to be that obsessed with attacking another? Thank God we can skip them on this board and don't have to deal with that hateful mindset.
oh, it was Obama's fault - sm
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Ms. Foxx is responsible for her own mouth. I read her remark in its entirety and found the spirit of her message to be consistent with someone who is markedly out of touch. I don't make enough money at a full time job to put myself through college without a loan; I would love to know what job she is recommending to students.

I agree that it should not be assumed that parents will pay for their kids' tuition. That is why they are called student loans. This is how students accrue debt - even the ones that work while in school.

I still believe it's silly and unnecessarily polarizing to lump people into groups and judge them. That style of thinking is generally known as prejudice, and is almost always of little utility. I, for one, don't complain about the rich, and I don't resent anyone's wealth.

What a joke - OBAMA TOOK OVER SCHOOL LOANS

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and aide to students, removing banks from it altogether. THE STUDENT LOAN PROGRAMS ARE CONTROLLED BY THE DEMOCRATIC REGIME. So there's your left-wing management...double interest. Obama has screwed up everything he touches.

enlighten me, please - sm

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How on earth do you remove banks from the loan process? Who loans the money? This has nothing to do with the "democratic regime" or left-wing management.
Enlightment on the way - Try reading back about 6-10 months ago
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This is the problem when people will not research what the Obama regime has done. Banks used to make loans to students (with some govt. oversight, regulation). Banks were responsible for making the loan, managing the loan, collecting the loan under govt. regulations/oversight. Obama removed the banks from the process all together stating it would be more "efficiently" and "cost effectively" handled directly by DOE. See Wall Street Journal or Google and read all you need to know. DOUBLIGN OF STUDENT LOANS IS DIRECT RESULT OF OBAMA TAKEOVER. In 2007, then SENATOR OBAMA VOTED AGAINST KEEPING STUDENT LOAN RATES AT LOWER INTEREST - OBAMA VOTED TO HAVE THEM RAISED. Google congressional votes.

The furor over President Obama's trillion-dollar restructuring of American health care has left his other trillion-dollar plan starved for attention. That's how much the federal balance sheet will expand over the next decade if Mr. Obama can convince Congress to approve his pending takeover of the student-loan market.

The Obama plan calls for the U.S. Department of Education to move from its current 20% share of the student-loan origination market to 80% on July 1, 2010, when private lenders will be barred from making government-guaranteed loans. The remaining 20% of the market that is now completely private will likely shrink further as lenders try to comply with regulations Congress created last year. Starting next summer, taxpayers will have to put up roughly $100 billion per year to lend to students.

***
For decades, loans carrying a federal guarantee have been the most common way of borrowing for college. After raising money in the private capital markets, lenders made the loans, paying a fee to the government for each one. The government covered most of the cost of defaults while allowing the private lenders to make a regulated return.

The system broke down after Congress in 2007 legislated a return so low that no private lenders could make money holding these assets. To keep the money flowing to student borrowers, the government began buying the loans from private originators last year. But this larger federal role was intended to be temporary, with an expiration date next summer. The news from Washington now is that rather than scaling back federal involvement, the pols want the U.S. Department of Education to be the exclusive banker to America's college students.

It's not a popular idea on campus. Loans directly from the feds have been available for decades, but the government's poor customer service has resulted in most borrowers choosing private lenders. This week three dozen college administrators, representing schools from Notre Dame to Nevada-Reno, signed a letter urging a longer transition period to this "public option." The fear is that the bureaucrats will not be able to pull off a takeover in just eight months. "Any delay in getting funds to schools on behalf of students will result in our needing to find resources at a time when credit is difficult to obtain," warns the letter.

Tough luck for the Irish. Democrats have already greased this fall's budget reconciliation to pass all of this on a mere majority vote. They are helped by rigged government accounting that disguises the cost of making below-market loans to unemployed 18-year-olds. Democrats have claimed their plan "saves" $87 billion in mandatory spending by cutting out the private middlemen, and the Congressional Budget Office has dutifully "scored" $87 billion in mandatory "savings" (or a net of $80 billion after subtracting administrative costs).

But in a remarkable letter to Senator Judd Gregg, CBO Director Douglas Elmendorf admits that government accounting is bogus. He writes that the statutory methodology "does not include the cost to the government stemming from the risk that the cash flows may be less than the amount projected (that is, that defaults could be higher than projected)." Mr. Elmendorf further notes that the government's accounting system is specifically skewed to make direct loans from the government appear to cost much less than guaranteed loans made by private lenders. He says the real "savings" are only $47 billion, even though, in a deception that would be criminal fraud if it weren't mandated by Congress, the official estimate remains at $80 billion.

Even the unofficial number is dubious. The government has been claiming lower default rates than private lenders, but most government loans have been to students at four-year colleges. The private lenders have serviced a higher percentage of students at community and two-year colleges, where defaults are more common regardless of lender.

If the feds are now making and owning all such loans, expect default rates to soar. When the government hires contractors to collect on its loans, it pays them for simply calling the borrower, regardless of the result. Private lenders, on the other hand, make money from a performing loan and have a greater incentive to do careful underwriting and aggressive collection.

***
The government will nonetheless start spending these illusory "savings" immediately, and this spending is certain to top official estimates. The Obama plan also adds a CBO-estimated $46 billion in new spending over 10 years to enlarge Pell grants. Ominously for the federal fisc, starting in 2011 these grants will automatically rise each year by the consumer price index plus 1%. Not that students will actually benefit from this subsidy explosion. Colleges have reliably raised prices to capture every federal dollar earmaked for education financing.

Rep. John Kline (R., Minn.) decided the cost estimate for Pell grants was too low, so he asked CBO to take a second look. Along comes another enlightening letter from Mr. Elmendorf. This week he wrote that Mr. Kline is correct—it looks like they will cost another $11 billion. Unfortunately, the earlier estimate must remain the official score under budgeting rules, even though the official scorekeeper says it is wrong.

All of this is certain to pass the House, and the only chance for stopping it is in the Senate. If it passes, parents will soon have no choice beyond a Washington bureaucracy to borrow money for their college-bound children, and taxpayers will pay a fortune for the privilege.
Great delusional cut and paste! nm - VTMT
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Only in your mind - nm
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As usual - any fact scares you - You want sources, you get them and still squeal
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I personally feel that college is a rip off - Trigger Happy

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My step son is getting ready to graduate from high school. When I look at the tuition for college with housing and not including books....it is just ridiculous. Why must colleges charge so much? Why do college students need luxury dorms? The college here in town is a Christian college...which I have no problem with....but every year they build something new or tear something down and rebuild something....and every year tuition goes up. It is just crazy! I don't think kids should come out of college owing as much as some of them do. We told our son that we would help a little bit. Thank God he got a scholarship, but that still left a significant amount left. Thankfully his college will be near his mom's house and he will be living with her during college to save money instead of staying on campus.

I know the president has talked about lowering the interest rate for student loans, but to me that is just a band-aid. I don't think that will fix the bigger problem. Just my 2 cents.

I know I got off the subject of Virginia Foxx...I didn't mean to hijack your post. I just had a little rant of my own. ;)

of coarse u do. Don't need no learnin. - nm

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You need all the learnin' U can git - We see the lack of it in Yourn posts

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bwahahahaha Golly Jethro! Get yournself seom edumecation. Would help yourn posts.
Ware kin I git me sum? - Knute Grinch - nm
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At least I got me sum klene guns and bulits.
From Oblablah and Erica Holder - U shure do be needing some & so do thay
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That isn't what I said at all. - Trigger Happy

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Every time financial aide is raised for college students, tuitions go up. I'm not saying people don't need higher education because the work force proves that you do need it, but I stand by what I said....it is ridiculous how much college costs. There is NO reason that colleges should be charging as much as they do. That was my point really. Apparently some of you didn't get that and yet I'm the retarded moron who thinks college is stoopid? Once again...the rudeness on this board by some people is just SO refreshing....about as refreshing as the air is in an elevator after someone farts.
ROFL - Now this is a good post - what if
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I about fell out of my chair laughing at your last comment. Totally made my day. Right on.

I was going to reply to the poster, but couldn't have said it better than you did. Your first post was exactly right. Colleges/universities are charging too much and for what. So you end up owing the rest of your life just to say "lookee here, I got me a piece of paper that says how smart I am" (said in my best Gomer Pyle/Billy Clinton voice). One of my former bosses was in his 50s still paying off a loan he took out in his teens/20s. It's ridiculous. Besides not every person who graduates from college is intelligent and not everyone who doesn't is stoopid. Take a look at the successful people who don't have college degrees. Bill Gates, Michael Dell, Rockefeller, and Mark Zuckerberg and Andrew Jackson to name a few. Bet nobody is telling them they are stoopid.

Maybe before posters hit the reply button they should get a few facts straight (i.e. don't claim posters said things they didn't).
To Trigger Happy - Conservative
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This post was great...LOLOLO!! I thoroughly enjoy what you write. Loads of common sense.

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