Home Mobile Archives Reader Blogs Register Login

Thursday, November 10, 2005

North Dakota Students Worried Over Cuts To Student Loan Programs

FARGO (AP) - North Dakota college students are speaking out against a federal budget bill they say would hit student loan programs hard.

"I'm afraid it will price students out of college," said Minot State University junior Mike Sadowski.

Kayla Pulvermacher, a senior at North Dakota State University, said she worries the bill will force her two younger brothers to bypass a college education.

"It is important to me to see my younger brothers have the same opportunity as me," Pulvermacher said Tuesday, at a press conference called by the North Dakota Progressive Coalition.

"They (lawmakers) need to find a different alternative."

The budget bill is an attempt to control automatic growth in such government programs as Medicaid, food stamps and student loan subsidies, but even some Republicans in Congress are unhappy with it, and changes are expected.

About 75 percent of North Dakota's college students, or about 30,000, have loans, said Barry Nelson, the North Dakota Progressive Coalition board chairman.


I appreciate the concern of students who depend on student loan programs for their education, but the truth of the matter is that as more federal money for college tuition becomes available the price of tuition goes up.

This is the effect programs like Medicare and student loans have on markets. They insulate citizens from the true costs of things like education and health care thus allowing health care providers and higher learning institutions to charge outrageous prices for their services with little or no backlash.

College tuition prices have become a vicious cycle. The price of tuition goes up, so the government makes more money available. Colleges see that more money is available and raise tuition again. At some point, though, there has to be an end. If more money didn't become available tuition isn't as likely to go up. And if it does it probably won't stay up for long. After all, these colleges aren't going to price themselves out of business.

Further, letting the students feel some more of the financial impact from their academic decisions will likely prompt more of them to work a little harder in school. How many college students do you know spend the first year or so at school messing around and not really taking things seriously? We hear a lot of complaints about the "party atmosphere" on a lot of college campuses. How long do you think the party would last once students were tasked with shouldering more of their own tuition costs?

(via The North Dakota Democrats Blog)

Comments

Avatar for Thatedeguy

As someone who very recently finished school and did receive a good bit of it in student loans, I have mixed emotions about this.

I could not have gone to school where I did(Jamestown College=pricey) if it had not been for student loans.  However, if those student loans had not been available, or were reduced, there were other less expensive schools that I easily could have gone to.  I also think that the student assistance program that we have now has a great deal to do with the everybody going to college. 

Basically, College is a privilege.  Not all people are cut out for college.  Some realize this and don’t try.  Others do try and don’t get anywhere.  There is a reason that some schools actually filter based on standardized test scores…

Thatedeguy on November 10, 2005 at 08:12 am
Avatar for Steve

That article is not specific enough. What, exactly, is being “cut”? Is more money being allocated for it than what was allocated this year? If so, then it is not a cut, and people need to stop referring to it as such.

Are they talking about the program where the government pays the interest on student loans while someone is enrolled in college? If they are getting rid of that, big whoop, kids can deal with it. The interest will be deferred until your out of school, then it will be added to your balance. Or, you can pay off the accrued interest while you are in school.

Another thing I want to mention is that government guaranteed student loans are not free. You are in essence buying insurance the cover your loans if you default. When I got my loan disbursements when I was in college, there was a big chunk taken out to pay this fee. It may be different now, however.

Also, is the government the entity that is actually lending the money, or is it still coming primarily from banks?

A look at the name of the group, the North Dakota Progressive Coalition, should tell you all you need to know. They just a bunch of socialists who want everything but want everyone else to pay for it.

Steve on November 10, 2005 at 11:11 am
Avatar for The Whistler

Does anybody know what a UND or NDSU college professor makes in a year?  How does that compare with a job in the real world. (assume that ND is real)

I do see in different publications references to college professors making $180,000 a year(Ward Churchill for one).  In my opinion there aren’t many teachers worth that kind of money.

The Whistler on November 10, 2005 at 01:11 pm
Avatar for Trackback - Powered by HaloScan.com

[...] Trackback URL for this entry:http://haloscan.com/tb/rgion/113163842047056407North Dakota Students Worried Over Cuts To Student Loan ProgramsExcerpt: FARGO (AP) - North Dakota college students are speaking out against a federal budget bill they say would hit student loan programs hard. “I’m afraid it will price students out of college,” said Minot State University junior Mike Sad...Weblog: Say AnythingTracked: 11.10.05 - 8:14 am [...]

Avatar for Say Anything - North Dakota’s Most Popular P

[...] These people will no doubt be trying to raise alarms about “poor working families” who cannot afford to put their kids in daycare, but I wonder if it has ever dawned on these people that rising child care costs, much like rising tuition costs, are the fault of too much government money being made available? [...]

Avatar for Ryan G

Rob, that was an incredibly selfish post.

You want to make college more expensive so that students work harder?  Excuse me?  I paid out my ass for college and I worked just fine, thanks.  I don’t need the government to make sure I work hard by making it expensive as hell.  When I go into repayment on December 1, I’m sure I’ll remember how hard I worked.

And if you’re going to make wild claims about college conspiring to cheat the government out of loan money, at least provide a little evidence.  Or will the black helicopters come to get you if you reveal the conspiracy?

Fact is, the USA is falling behind in college graduates.  We produce far less engineers than countries like China.  If anything, we should be making college easier to go to, not reducing the available loans and purposefully increasing tuition so that students really appreciate the luxury of selling their kidneys to attend college.

Would you like fries with that?

Ryan G on November 14, 2005 at 12:12 pm
Avatar for The Whistler

How would making college easier improve our output of Engineers and the like?

Oh, I’m not motivated to work part time to go to school, but if you pay me for four years I’ll take a real tough major.

Frankly we don’t have to increase our quantity of college graduates, we need to increase the quality.

The Whistler on November 14, 2005 at 02:11 pm
Avatar for likwidshoe

Ryan G spits, Rob, that was an incredibly selfish post.

Hold on...let me get out my liberal to reality dictionary.

Ahh yes. Here it is:

NEED - When someone wants someone else’s money.
GREED - When someone wants to keep their money.

You want to make college more expensive so that students work harder?

Where did Rob say that he wants to make college more expensive?

I don’t need the government to make sure I work hard by making it expensive as hell.

How would the government make school “expensive as hell” (besides what they’re doing now by making sure that it’s “free")?

And if you’re going to make wild claims about college conspiring to cheat the government out of loan money, at least provide a little evidence. Or will the black helicopters come to get you if you reveal the conspiracy?

Use a little common sense Ryan. What happens when the price is “free”? Answer: it gets expensive as hell. Witness: the cost of medical care and college. Nice “black helicopters” comment…

If anything, we should be making college easier to go to, not reducing the available loans and purposefully increasing tuition so that students really appreciate the luxury of selling their kidneys to attend college.

So if one doesn’t and can’t get these government loans, they are essentially out of luck unless they are rich. Great plan on increasing enrollment there chief.

Would you like fries with that?

Get used to saying that Ryan.

likwidshoe on November 14, 2005 at 05:11 pm
Page 1 of 1        

Post a Comment


Before commenting, please recite:

Grant me the serenity to ignore the trolls,
the courage to debate with honest opponents,
and the wisdom to know the difference.

Name   
Email   
URL   
Human?
  
 

Upload Image    

Remember my personal information

Notify me of follow-up comments?

Note: Notifications will only be sent to confirmed email addresses.