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Student Loans Start to Bypass 2-Year Colleges

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posted on Jun, 3 2008 @ 12:58 AM
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Student Loans Start to Bypass 2-Year Colleges


www.nytimes.com

Some of the nation’s biggest banks have closed their doors to students at community colleges, for-profit universities and other less competitive institutions, even as they continue to extend federally backed loans to students at the nation’s top universities.
(visit the link for the full news article)




posted on Jun, 3 2008 @ 12:58 AM
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Man, what better way to ensure that the division between the have's and the have not's continues than stopping funding for community colleges.

Community colleges are one of the only ways that people who aren't wealthy can get an education. Now it will be even harder to do something other than unskilled labor or the military.

Is that part of the plan?

www.nytimes.com
(visit the link for the full news article)



posted on Jun, 3 2008 @ 01:35 AM
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reply to post by Karlhungis
 


I would disagree that community colleges are the only way the non-wealthy can get an education. There are quite a few public state universities that are highly respected and very cheap.

Its not easy to get into highly respected and cheap public universities, but anyone who did good in school can do so - and if you did very well, student loans aren't a concern at all because its merit based. Its even easier to get into a "average" state school, many of which are very cheap. My family was very poor, but I got merit scholarships for all my schooling - at a respected school.

I'm happy to read they wont be funding for profit schools. The fact of the matter is the University of Phoenix Online and its ilk simply don't provide a education that is respected by employers - so why should lenders give money to students when they know they will have a hard time finding a job with a degree from these schools (and thus be less likely to pay the loan back)?

However, this is distressing for trade schools. I'm not sure if community colleges that offer degrees in skilled trades offer scholarships for those areas, but if not, then this would be bad news.



posted on Jun, 3 2008 @ 01:41 AM
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Yeah it's not that hard to get into alot of colleges. I dropped out got my GED and I still got into UNM. I even got a scholarship. If I can get a scholarship with my GED than i'm sure a less fortunate person with good grades in HS can get alot of scholarships.



posted on Jun, 3 2008 @ 01:46 AM
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It's another sign of our collapse. When we can no longer educate ourselves, times are getting TIGHT.



posted on Jun, 3 2008 @ 01:49 AM
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It is not a matter of getting in, it is a matter of affording the education. Cost per credit hour at a public university is $200+ (For example: $250 at ASU, $400 at Michigan) while community colleges are closer to the $70.00 price range.

I know many people that could only afford to go to school by starting at a community college and transferring their credits to a traditional University.

I think this is a bad move.

(Also, I didn't say it was the "only" way to get an education)



posted on Jun, 3 2008 @ 01:55 AM
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But good students get scholarships to pay for everything or almost everything anyways - whether it be at public universities or community colleges.

Personally, I think a higher education has become too much of an entitlement. College is the new high school. Its easy to get into, the threshold for going free is very low (at some of the schools with no reputation), and its easy to graduate. The standards have been lowered so much that a associates degree in a non-skilled trade is almost worthless in my opinion, and a college degree is almost as bad.

I think schools need to up the bar and make a college degree worth something again. They won't, because its become a public entitlement - but at least the lenders are de facto making it such that you'll need to do well enough to get a scholarship if you cant afford it or take out a loan. Its not the way I'd like to see the bar raised, but it does raise it a bit.



posted on Jun, 3 2008 @ 02:05 AM
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reply to post by ALightinDarkness
 


Student loans are not merit based, they are credit based, and the new standards are your parent must have over 700 credit to get a private loan, if your parents earn over 25,000 you qualify for nothing in free aid, and then must exclusively use loans that are entirely credit based to get the money to pay for any school. My brother in law is still in school, his mom makes 24,000 a year, and he has been cut off for aid because she makes "too much" the school alone without books or board at his local state school is 29,000k a year. She makes less then one year of that school, yet the government considers her to rich to help, and therefore is expected to live and pay out of pocket for hi education. Very few people have perfect credit, and it is another way to keep the poor and minorities out of college. I usually hate things that are made to look like they favor a certain race or class, but unfortunately this is the prime example where there is a legitimate case of discrimination against anyone not rich or upper middle class. Plus loans and Stafford loans require willing parents working good jobs to co-sign. If you don't have parents, your parents are disabled, or do not wish to sign the paper, you are eliminated from going to school, something that should be outrageous in this country. School is becoming something that soon only the elite will be allowed to enter.



posted on Jun, 3 2008 @ 02:13 AM
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I'm well aware they are not merit based...never said they were. My point was that if you cannot get a student loan because its not offered at your school, nor can you afford it outright, you are forced (if you wish to attend that school) to perform at a high enough level to get a scholarship.

And actually, the credit standards for Stafford loans are non-existent - if your going to a real school, you can get unsubsidized loans. Some of my friends are still in college, and Stafford loans required no sort of cosigning. There are limits as to what you can get for subsidized loans, but the unsubsidized are free for the taking. They may not be much, but they are enough for a cheap school.

This whole "itll be only for the elite" is the typical populist line on ATS. Its simply not true. School is not an entitlement - everyone does not have a innate right to a college degree. Its something to be earned, and you can earn it for free if you do well. Remember - the elite don't need to go to college, they are already rich. We should be happy when they do anyways, they are paying full sticker price and supplementing the rest of us.

According to a calculator that mimics the government's EFC guidelines (that estimates need based aid), even if the worst circumstances (family size 2, no taxes paid, 1 going to college) a family who makes a gross of $24,000 a year has a estimated family contribution of $0. There is no one way someone could be making that little bit of money and be denied need based aid, unless they had tremendous amounts of non W-2 assets.

www.finaid.org...

[edit on 3-6-2008 by ALightinDarkness]



posted on Jun, 3 2008 @ 03:04 AM
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reply to post by ALightinDarkness
 





But good students get scholarships to pay for everything or almost everything anyways - whether it be at public universities or community colleges.


My concern is about the average and below students that still want to further their education and improve their lot in life. To me this reduces their opportunity. The average and below crowd won't be able to get scholarships and now they won't be able to get a loan.

An exaggerated scenario would be if they only offered financial aid to Ivy League schools, because anyone can get into a Public University. Then only GREAT students would be getting into school and the good students would find it much harder to attend.

I see where you are coming from, but I am looking at the other side of the coin.



posted on Jun, 3 2008 @ 03:10 AM
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This is terrible. You cannot get financial aid if you are under 25and if your folks make enought money. But its so easy if you got a kid, or you're over 25. Im glad Im almost done with 2 years, but I got so much debt, I can swim in it. My parents make enough, but they are in debt too, the government doesnt take revolving balance of your parents into account. Everything I do for school comes out of my pocket ( credit cards, loans, 30+ hour job). We need a change in this country.



posted on Jun, 3 2008 @ 11:12 AM
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reply to post by Karlhungis
 


The two year degrees do offer some of the biggest bang for your education dollar ,but it depends on the degree plan . There are community college courses which waste the money and time of the students ,but a guy with a two year degree in Chemistry , Lab technology, Accounting, or Biology can make uppwards of seventy thousand dollars a year if he or she is good in those fields. While someone who is a liberal arts major from a prestigious University might find himself forced to open a hot dog stand just to make ends meet. It sounds like the bankers are allowing class snobbery to interfere with good sense. A better strategy would be to give community college students loans for skills and training which offer the best pay back.

[edit on 3-6-2008 by eradown]

[edit on 3-6-2008 by eradown]

[edit on 3-6-2008 by eradown]



posted on Jun, 3 2008 @ 03:00 PM
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It probably has a lot to do with the risks to the lender. Unless it's a federally secured loan, these banks are basically handing out money at a significantly higher risk factor and a lower interest return rate than almost any other loan. I understand that there are a number of people who go to community college, get a degree, and then get a good paying job... but there are far more who go for a couple of semesters, get no degree or a degree in liberal arts, and then spend their lives broke and never pay back their student loan. Banks are finally starting to act somewhat responsibly and are restricting loans and credit to people who are actually likely to pay back their debt.



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