« Government's Role in Student Loans-BECKER | Main | Reply to Student-Loan Comments--Posner »



TrackBack URL for this entry:

Listed below are links to weblogs that reference Reply to Comments on Student Loans-BECKER:

» The Government Should Stop Funding Student Loans from Hispanic Pundit
Only a crazy right winger, or libertarian could possibly believe that, you say? A proposal that favors the rich at the expense of the poor, you say? If you do, you would be wrong on both counts. That is precisely the latest topic by one of the most... [Read More]

» Judge prefers blogs to law reviews from http://www.nathanslaughter.com/

Richard Posner, judge of the 7th Circuit Court of Appeals, criticized law reviews and then posted a weblog. He criticized fundamental problems in the methods of law journal scholarship and then turned to the form. "THE RESULT OF THE SYSTEM OF SCHOLARLY

[Read More]

» Card Credit Interest Low from Card Credit Interest Low
We offer credit card listing for people with good credit, bad credit or no credit Credit cards that we compare include low ... [Read More]

» Low Rate Credit Card from Low Rate Credit Card
The lender will run a credit check on them and offer a rate based on that.SWITCH BALANCES CAUTIOUSLY If you transfer your high interest balances ... [Read More]

» Loan Rate from Loan Rate
ICICI, SBI to hike home loan ratesThird is setting the discount rate, the rate of interest banks must pay to borrow money at Theoretically,... [Read More]

» Card Credit Student from Card Credit Student
or Give Online by using a prepaid or "stored value" card Adult: $15 Student: $10 Tickets are only available through advanced p... [Read More]

» Card Credit Student from Card Credit Student
or Give Online by using a prepaid or "stored value" card Adult: $15 Student: $10 Tickets are only available through advanced purcha... [Read More]

» Low Rate Credit Card from Low Rate Credit Card
Credit card fraud is one of data mining39;s success stories: all credit card We39;ll assume the system has a one in 100 false positive rate (9... [Read More]

» Defaulted Student Loan from Defaulted Student Loan
Debt Consolidation SpecialistStudent Loan default student Raytheon is able to do student loanStudent Loan Consolidat... [Read More]

» No Interest School Loan from No Interest School Loan
Their price structure is just We had approached the banks forIn school and Grace Interest Rate= 7.15% Repayment Rate = 8.00% No Loan... [Read More]

» Student Loans from Student Loans
Thanks to the infinite wisdom of our state government, after receiving his master39;s degree refinance student loan private education loan refinance l... [Read More]

» Find a loan here from Find a loan here
This site provides details of great UK loan deals. [Read More]

» online insurance quote from online insurance quote
The period of hopelessly digging up faithful conjectures regarding this idea are over. [Read More]

» mom and baby restaurant from roasted baby white potatoes and recipe
baby pics how to draw baby [Read More]

» Student Loans from Student Loans
Apply online for federal and private student loans, [Read More]

» Govenment Student Loans from Govenment Student Loans
While the process of finding money for college can be [Read More]

» Apply Online Student Loan from Apply Online Student Loan
These online student loan Discover Student Loans- Apply online for college loans, Research a [Read More]

» Undergraduate Student Loans from Undergraduate Student Loans
TITLE: Undergraduate Student Loans URL: http://www.eduloansfinance.pickardfoundation.com/undergraduate-student-loans/ IP: BLOG NAME: Undergraduate Student Loans DATE: 06/17/2008 10:23:13 PM [Read More]

» Loans For Undergraduate Students from Loans For Undergraduate Students
Table 30, Federal Direct Loan Program (FDLP) loan volume commitments for Parent [Read More]

» Government Student Loans from Government Student Loans
Borrowers can apply online for consolidation of their federally insured student loan debt. For a Di [Read More]

» Student Loans And Government from Student Loans And Government
As levels of educatee debt hold risen over the student loans and government few age [Read More]

» Federal Student Loans from Federal Student Loans
However, even though it seems so blushful, the truth [Read More]


Feed You can follow this conversation by subscribing to the comment feed for this post.

Jim S

The issue of declining value of education is one of recent history that would be distorted by looking at a thirty year time frame. The question you have to ask is where are we going? Does the last thirty years offer the better feel for it or does the last five years? How much will outsourcing not only cost jobs here but also serve to put downward pressure on salaries because of implicit threats to outsource if our spoiled tech workers ask for too much? I have read of professionals in both the IT and engineering fields who say they would not encourage their children to enter the field. Nowhere do you address these psychological issues.


I'm not sure I agree with the point: "But high credit card rates are mainly due to the high cost of servicing these accounts because they have relatively low dollar amounts per account, and high default rates." No doubt those factors are part of credit card companies' pricing analysis, but isn't the other big part, and the part that makes the cost-analysis possible, that demand for credit card loans is relatively inelastic? That is, credit card companies get away, in the marketplace, with charging very high interest rates because there are many people in the market for consumer credit for whom the high cost is insufficient disincentive to borrow.

That doesn't make credit issuers bad people, or necessarily make high interest rate borrowers foolish, though there's an argument for both propositions. Rather, it's just to say that high credit costs among consumer borrowers is a function both of the costs of extending the credit and the demand for the credit. My sense is that if the demand for credit, on as unfavorable terms as consumer lenders are often able to exact, were lower, lenders would find a way to minimize the transactional costs that figure into the higher rates by, among other things, vetting borrowers better to reduce defaults, and taking advantage of technology efficiencies to reduce processing costs.

The larger point, though, is that the demand for credit by students seeking money for educational purposes is, like consumer credit, relatively demand inelastic. (In one sense, that's cause for celebration in that it suggests Americans value higher education with fervor somewhat comparable to how much they value big screen tv's.) So, if demand for educational loans is relatively inelastic, and the transactional costs of lending money are manageable in both the consumer and education loan business, what is to stop the market from lending to students at a much higher rate than they currently do?

Once someone makes the judgment that they will take themselves out of contention to earn very much money for two or three or four years, it seems to me unlikely that credit costs of an additional two hundred or four hundred or six hundred basis points, amortized over ten or twenty years, will dissuade very many students at all.

Now that may, in free market terms, be a perfectly reasonable and even desirable result. But I also think it's acceptable, and desirable, for government, in certain arenas, to make the judgment that some diminution in the freedom of markets is justified by some overriding social goals. One of those is making education affordable and attainable for its citizens.

I'll concede that that argument counsels in favor of indexing government subsidized or guaranteed or protected loans to students' income since, for middle-class and upper-class students, as I say a few percentage points won't deter them in obtaining an education. What my own argument omits, though, are these two factors (at least): (i) most students who think of themselves as middle or upper-class aren't -- their families are; (ii) an extra $200 per month in loan payments, though not a very weighty prospect viewed three or years removed from actually having to pay those loans back, is a lot when it comes to deciding what to do with one's shiny new degree. $200 may not be much to a new associate in a silk stocking firm in a big city, but it is a lot to a newly minted legal aid attorney.

In support of government guaranteed and regulated student loans are, then, these two notions. Students ought to be considered for their eligibility for government loans and subsidies, once over the age of majority, based on their own financial status, not that of their families. On the margins this will result in a few Kennedys and Trumps getting discounted rates on student loans, but in the vast majority of instances will be vastly fairer to middle income families who will need help to pay $100,000 for an undergraduate or graduate degree. Second, government does have an interest in seeing that it's well-educated citizens can afford to choose to work in places, and ways, that are important socially. Student loan subsidies are a reasonable enough way of going some distance toward doing that.

Brian Ferguson

I wonder if one consequence of greater involvement by private lenders in the market for student loans would be risk-rating on the basis of the track record of the high school the student graduated from. Suppose a high school had a good record in the sense that its graduates had a high probability of completing their university degree. If that led to its graduates having to pay significantly lower rates on their university student loans, it should tend to give high schools an incentive to do a better job of preparing their students for university. The effect of the high school on interest rates would be something which could be estimated independently of the effect of factors like family income.


مركز تحميل


thanks for your post.perhaps you will like abercrombie


شات سعودي


Thank you, you always get to all new and used it



شات مصر
دردشة مصرية




شات تعب قلبي

شات الحب


شات الرياض

شات غرام


دردشة الشلة

دردشة تعب قلبي


شات الخليج

شات حبي


Most high interest credit cards are usually easy to get and really the interest rate only matters if you roll over your balances from month to month. People that have had bankruptcies, judgments or just have a bad credit rating, for what ever reason are the most common applicants for high interest credit cards. http://fassd.com


دردشة الشلة

دردشة الرياض


دردشة برق

دردشة الخليج


thanks to tell me that,i think thats so usefully----
tiffany jewelry
links london


Good afternoon. Now is the time for all good men to come to.
I am from India and know bad English, please tell me right I wrote the following sentence: "Displaying results for online school."

Thank you so much for your future answers :-D. Sunday school lessons online.


Good afternoon. It's never just a game when you're winning.
I am from Sri and learning to read in English, give true I wrote the following sentence: "Of the unit before cleaning the unit."

Thank :( Kitchen islands drop leaf.


شات الشلة

دردشة تعب قلبي


thanks very.. Sesli Chat


شات دلع

شات الود


شات حبي

شات الحب


tiffany jewellery
abercrombie and fitch


tiffany jewellery
tiffany jewellery

The comments to this entry are closed.

Become a Fan

May 2014

Sun Mon Tue Wed Thu Fri Sat
        1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31