how do you feel about ending subsidized loans for college students?

iVillage Member
Registered: 08-06-2009
how do you feel about ending subsidized loans for college students?
20
Thu, 07-14-2011 - 4:25pm
July 13, 2011
WASHINGTON -- As talks continue and the deadline approaches on increasing the federal debt limit, the federal government's subsidy for undergraduate student loans is now on the table.

The negotiations between the White House and Congressional Republicans, aimed at reaching an agreement before the U.S. hits its borrowing limit on Aug. 2 and risks default, have looked at entitlements and other federal programs as possible sources of savings. During talks Monday, Rep. Eric Cantor, the Republican majority leader, reportedly proposed making students responsible for paying the interest their loans accrue while they’re enrolled in college, a change that would save the government $40 billion over 10 years.

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Avatar for sabrtooth
iVillage Member
Registered: 12-03-1999

Well, as a parent whose children had UNsubsidized loans, and survived, I think it's a good idea. The difference between subsidized and UNsubsidized loans is the interest (right now, 3.4% on subs, and 6.8% on unsubs), and the fact that unsubs INTEREST is not deferred till graduation. But the interest CAN be rolled into the loan, if the borrower cannot pay as they go.
This does NOT need to be looked at as more onerous debt piled upon the aging parents. You all know my opinion is that kids need to have some incentive to stay in school, and to do well there. Having skin in the game does that. The data proves that the longer a kid stays in school, and the better they do academically while in in school, the higher the chance is that they will repay the loans.

iVillage Member
Registered: 10-25-2006

Our children never qualified for subsidized loans, but even so, I do not like Cantor's idea.

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iVillage Member
Registered: 11-28-1999

My DD had unsub loans the 1st 2 yrs and then since I got divorced from 2nd DH and total household income was then cut in half, she had sub the 2nd 2 yrs.

Avatar for coldfingers
Community Leader
Registered: 04-30-2000

At this point in time, I don't know that I even think kids should go to college let along take out student loans. BUT I think making it harder for kids to do that.....

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iVillage Member
Registered: 10-16-1999

On the one hand, I think low income students need every break they can get to get that college degree and a chance to get out of that "low income" status.

Avatar for sabrtooth
iVillage Member
Registered: 12-03-1999

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iVillage Member
Registered: 11-28-1999
sabrtooth wrote:

Well, as a parent whose children had UNsubsidized loans, and survived, I think it's a good idea. The difference between subsidized and UNsubsidized loans is the interest (right now, 3.4% on subs, and 6.8% on unsubs), and the fact that unsubs INTEREST is not deferred till graduation. But the interest CAN be rolled into the loan, if the borrower cannot pay as they go.
This does NOT need to be looked at as more onerous debt piled upon the aging parents. You all know my opinion is that kids need to have some incentive to stay in school, and to do well there. Having skin in the game does that. The data proves that the longer a kid stays in school, and the better they do academically while in in school, the higher the chance is that they will repay the loans.

Avatar for coldfingers
Community Leader
Registered: 04-30-2000
musiclover12 wrote:
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Avatar for sabrtooth
iVillage Member
Registered: 12-03-1999

Our agreement with our children was that we would repay their loans as long as they kept a certain GPA, got a viable education, and that we only had X amount of dollars to spend.

iVillage Member
Registered: 04-16-2009

I think it is very short sighted of your government. The US is already lagging significantly many of the other G20 countries in technology education. This will further make it more challenging to ensure that the US has a strong educated work force.

Can you guys actually afford this, in the long run?

For your long term technological future, you should be making it easier and not harder for your students to earn post-secondary educations. The world economy is increasing a knowledge based economy. Your country should be ramping up your emphasis on education, not reducing it.

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