Taking Responsibility for Student Loans
June 2nd 2010 13:35
So this morning I was reading an article on yahoo.com about student loans. The article was first published on the New York Times website. HERE is the link to the article if you would like to read it.
The point of this article was that yes the lady should not have taken out over $100,000 in student loans, but the school, Sallie Mae (Federal Student Loan Department), and Citibank are too blame for how much she is in debt.
I think that this is crazy. In the US we are losing so much of our personal accountability.
How is it Sallie Mae's fault?
The purpose of Sallie Mae is to loan student’s money for college. It is up to the parents and the student to decide how much they can afford. Additionally, Sallie Mae did cut them off and say they could no longer have loans because they had so much debt. Is it Sallie Mae's fault that she has a lot of student loan debt? No. If Sallie Mae does not get its money back they only owe an explanation to its shareholders, which is the taxpayers.
How is the school at fault?
They are not at fault. Their business is getting students into the school and educating them. The lady in the article never claimed that the school did not educate her or lied to her about how much it cost to attend the school. It is not their responsibility to tell people that they can't afford to go to that school. If a student can't afford it, the student and parent should decide that and then find another school or find some scholarships.
How is Citibank at fault?
Citibank is a private corporation. Or at least they were before the government gave them a lot of money. For arguments sake we will say they are still a private corporation. They are a nonprofit corporation in the business of making money. They only owe an explanation to shareholders if they do not make money on the deal. In no way are they responsible for the lady taking out too much debt, unless she can't pay it back, and then they are only at fault for loosing money for their shareholders.
I know that there are people that read this from other countries so please comment. How does your country handle paying for college and what are good and bad things that result from that system?
The point of this article was that yes the lady should not have taken out over $100,000 in student loans, but the school, Sallie Mae (Federal Student Loan Department), and Citibank are too blame for how much she is in debt.
I think that this is crazy. In the US we are losing so much of our personal accountability.
How is it Sallie Mae's fault?
(From Wikipedia.org)
The purpose of Sallie Mae is to loan student’s money for college. It is up to the parents and the student to decide how much they can afford. Additionally, Sallie Mae did cut them off and say they could no longer have loans because they had so much debt. Is it Sallie Mae's fault that she has a lot of student loan debt? No. If Sallie Mae does not get its money back they only owe an explanation to its shareholders, which is the taxpayers.
How is the school at fault?
(From Wikipedia.org)
They are not at fault. Their business is getting students into the school and educating them. The lady in the article never claimed that the school did not educate her or lied to her about how much it cost to attend the school. It is not their responsibility to tell people that they can't afford to go to that school. If a student can't afford it, the student and parent should decide that and then find another school or find some scholarships.
How is Citibank at fault?
(From Wikipedia.org)
Citibank is a private corporation. Or at least they were before the government gave them a lot of money. For arguments sake we will say they are still a private corporation. They are a nonprofit corporation in the business of making money. They only owe an explanation to shareholders if they do not make money on the deal. In no way are they responsible for the lady taking out too much debt, unless she can't pay it back, and then they are only at fault for loosing money for their shareholders.
I know that there are people that read this from other countries so please comment. How does your country handle paying for college and what are good and bad things that result from that system?
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