Today's edition of quick hits:
* Another good day for the right at the Supreme Court: "Justices across the ideological spectrum appeared inclined to uphold a controversial part of Arizona's aggressive 2010 immigration law, based on their questions on Wednesday at a Supreme Court argument."
* Even with the recovery struggling, Federal Reserve Chairman Ben Bernanke spent "much of a news conference Wednesday explaining why central bankers have decided -- for now -- to do nothing."
* Citing concerns over consumer privacy, the White House today threatened to veto CISPA if it reaches President Obama's desk.
* Student loan debt reaches $1 trillion in the United States. That's not a typo.
* Rupert Murdoch remains very much in the hot seat as part of a larger British judicial inquiry in the News Corp scandal.
* Amanda Marcotte reports on Lila Rose's ongoing anti-abortion activism, despite Rose's previous failures.
* Sen. Mark Kirk (R-Ill.) is still recovering from a stroke in January, and his office released the first photo of the senator since his hospitalization.
* Fox News found it outrageous for some strange reason, but President Obama slow jamming the news with Jimmy Fallon seemed pretty entertaining to me.
Anything to add? Consider this an open thread.
Leave a Comment:
Two more student loan trivia bits:
There are more people with loans than there are graduates.
Student loan debt is larger than all the credit card debt put together.
I shared a BEER with that guy. Awe inspiring.. ; ] I shared a Marlboro with the President too. ;]
Cheers
1 trillion in student loan debt! Does anyone know the way these subsidies work? Does the bank get subsidized with the other half of the interest payments? or does the government simply pay off the loan if the student does not pay? or both? I am really surprised more people are squawking this.
You're a little behind the curve, Don. Not your fault. It's a complicated subject. I have a professional connection to this subject (which I won't elaborate on for a variety of reasons) and I find it insanely complicated.
For context, here is how it used to work for federal student loans, specifically for Stafford loans. The feds would give money to banks and other loan originators who would then loan the money out to students. The federal government guaranteed the loan. The original loan amount was to be repaid to the originator, plus interest, plus any fees the originator could cook up (such as late fees). None of the money went back to the federal government even though that's really where the money came from. And since the feds guaranteed the original loan amount, the feds took care of defaults (which is crazy since the "originators" weren't loaning their own money).
Now the middle men are cut out. Now Stafford loans are made directly to the students. The original loan amount plus interest (and no fees) is paid back to the feds. The Department of Education has contracted with a number of companies to service the loans and they are held to strict standards and are rated on a quarterly basis on how well they meet those standards (such as default prevention). The servicers are rated in competition with each other. The higher the ranking, the more SSNs they are allowed to service (and they are paid per SSN serviced). If a servicer's ranking goes down, they lose SSNs and therefore money.
The new system is a little better for people taking out direct student loans. There are no fees larded on top of the original loan amount and interest, which helps some, and since the servicers are no longer in the "origination" business, there is no longer any motive to allow borrowers to go into default. In fact, the services lose ranking relative to the others when their default rate is higher than the others.
The new system is also good for the taxpayer because, under the old system, the portion of tax money going to student loans simply disappeared into private hands. Now the original loans plus interest return to federal coffers. I imagine that if run well, the feds could run a slight profit on student loans, and it's hard to see how that would be bad.
Still, the total student loan debt is much too high. That is not the fault of the fact of federal loans, but of the fact that even public colleges and universities are being run as if they were for-maximal-profit corporations. The quest to maximize profit always drives prices up (and the quality of service down).
Thank you for your thorough reply. So it sounds to me that there is no subsidy. I looked up Stafford loans and they drew a distinction between subsidized and non-subsidized loans. All that means then is whether or not you qualify for the reduced rate that congress is going to extend but there is no subsidizing going on.
The change I described is a very recent one, so the vast majority of existing student loan debt was built up under the older rules, and loans taken out under older rules continue to be governed by those rules. So, what you read is going to be both true and not true at the same time, depending on what happened when.
Told you it was complicated.
Thanks, well that's the job of the press is to explain and help us become better citizens. I bet a lot of people don't understand but few ask question when they don't know but pretend to know something they don't. My only concern was being exposed to a liability like the housing bubble and then having to bail out someone we can't afford to bail out. I think these new rules have helped reduce that risk.
I can understand that worry. I don't think there's much chance that even the old "commercial" loans will crash the economy. It's a big, steaming pile of debt, but it's strictly regulated and it can't be turned into financial casino chips like mortgages have been. I'm no wizard of finance, but I don't see the incentive to do that, even if it were possible.
What I worry about are the for-profit schools. I see people swinging from one to another, trying to get something resembling an education and a degree out of those scammers, rarely getting either but still piling up debt. Most of these places are just glorified diploma mills, often minus the diploma, with a heaping pile of Nigerian prince thrown in. And like it was said on the show the other night, that student-loan debt accounts for about half of the defaults even though they are really a small percentage of the total debt. If you're looking for a place where a meltdown could happen, this is it. Ugh.
They think POB is trying,with Fallon, to steal their 'ranting with Nugent' idea.
A group of Notre Dame professors slammed the Bishop of Peoria for his comments comparing Obama to Hitler and Stalin. The Bishop is trying to walk back his statements. But there has been a formal complaint to the IRS about the political statements by the Bishop. A group advocating separation of church and state filed the complaint. "United Church of Christ Minister Barry Lynn, executive director of Americans United for Separation of Church and State, says the bishop’s comments violate the federal tax code provision that bars churches and other non-profits from intervening in political campaigns." Finally, the AntiDefamation League has demanded a retraction from the Bishop.
Sounds like we need a new solicitor general. Sounds as if this one is a right wing nut.Of course since there might be a chance for Obama or Mitt to elect a justice it could be that what is going on is a shake down to expose Latinos to the threat that if they stay home rather than vote then Mitt will naturally drop the case.
Politics is a filthy business and I can not see how anyone could enter into it without surrendering their humanity.
If I keep facepalming or facedesking after seeing some of these headlines, I may need immediate medical assistance.
*Coughs* Mittens was on Letterman.. No outrage?
Supreme Court looking to be siding with Arizona? *gasps!* ... Yeah, I figured as much actually.
Fox is'nt a news channel,it should be known as Fox Liars & Gossip Channel.Thats what they do best.
There's a few shows on Fox I like, but what they call news and commentary, I run far as I can from that.
Slow jamming the news, totally cool… I suppose McCain and Palin on Saturday Night Live was just one more part of campaigning.
And… I would not wish a stroke upon anyone, even those that hate me.
Fox News found it outrageous for some strange reason, but President Obama slow jamming the news with Jimmy Fallon seemed pretty entertaining to me.
And of course the video showed up on Ed Shultz tonight of these same
three stooges(I wouldn't want to insult their memory) ....Idiot ideologues gushing over the appearance of Shrub on a game show .Their hipocracy knows no bounds.
Can I just say this "POTUS-with-the-mostest!" slow-jam is fabulous. As one commenter at YouTube noted, "How is a guy with the personality of a potato (Romney) supposed to top that?"
With sour cream and bacon bits? Eww. I may never even look at another baked potato again.
Dear Rachael,
Thank you for pointing out the problems with Veterans
Administration Medical services provided to our returning Vets.
I came into the VAMC
in July 2008 and I want to say that they are doing a great job providing
services. The people at the hospitals
that I’ve been associated with (Carl T Hayden VAMC – Phoenix, Menlo Park part
of the Palo Alto - VAMC in Palo Alto, CA and Little Rock VAMC in Arkansas) have
been wonderful. I’m always greeted with
a smile and a “how may I help you?’ IF
there is a question, the staff has gone out of their way to answer it. Even if they have to walk me down to another
desk and making an introduction for me.
The VAMC is associated with the most modern and superior medical
schools in the United States and they provide very knowledgeable young doctors
for our treatments. Again greeted by
all with a smile, great respect and thanked for my service to our country, a
far cry from the treatment I received upon returning from Vietnam. I am writing about a group of over worked
providers who daily do as much as they can do with what they are provided. Superior people.
The VA has the responsibility to serve Vets who served in
WWII, Korea, Vietnam, Desert Storm and again Iraq and Afghanistan Wars. And let’s not forget all of the little issues
that have mobilized our American troops. Do you see where this is going? The VA has been provided too little and we
running out of time to provide it. When
troops are given anti-depressants and other anti-psychotic medications and kept
actual combat conditions. It doesn’t
take a rocket scientist to see that there will be a large assault on the
limited services that can be provided.
If the VA doesn’t have the needed resources, America is going to see the
same thing that happened to the returning Vietnam Vets; alcoholism, drug
addiction, homelessness, broken families, just to name a few issues that we
lived through and it hasn’t yet been completely resolved.
I volunteer at the hospital and from time to time push a one
legged old man down the hall and listening to his story. I have facilitated addiction classes, and
support groups. I even aided in church
services at the VA Hospice just to support the Vets. Why? Because I could and can and will.
Thank you for bringing these issues to the front burner, but
remember, the VA hospital system is doing as much as they can with what they
are supplied. I am alive today because
of the services that were provided me by the VA.
Patrick McAndrew - Veteran
My son (which is a college student) and I, watch it on TV, and he found informative and entertaining. Which was very enlighten because he's not big on political news.... Afterward, he turn to me and said, "That he ( PBO) relate to me, he would vote for PBO"...
And that what Faux news is afraid of because the narrative is that PBO can't relate with the 18-29 yrs. and Robme is making inroads with this age group. Even though he leading this age group by double digits... CNN, CBS, ABC, NBC, Faux, WaPo, WSJ, NYT and deathly Wash. Correspondents are not telling people.. They are deathly carry Robme to the finish line .... Same with the Latinos and woman voter which he (Pres. Obama) is polling in double digit over Robme...
Cool and far from UGLY, which is what most USA actions have look like lately. Thnak God yhe President at least is upbeat about this. In Chile they are killing students who have been protesting their education woes for over a year now.