AOC makes student loan payment during congressional hearing on loans

[Yo_Mama_Been_Loggin]

WASHINGTON – Rep. Alexandria Ocasio-Cortez used her bank account to make a point during a House Financial Services Committee hearing on student debt.

Ocasio-Cortez opened her remarks by telling the witnesses and audience that she had made a student loan payment while attending the hearing.

"I literally made a student loan payment while I was sitting here at this chair, and I looked at my balance, and it was $20,237.16," she said. "I just made a payment that took me down to $19,000 so I feel really accomplished right now."

She called for action on the nation's student debt.

“I’m hearing people on this committee say it’s not our job," Ocasio-Cortez said, referring to congressional Republicans' testimony during the hearing. "This is our job.”

https://www.msn.com/en-us/news/politics/aoc-makes-student-loan-payment-during-congressional-hearing-on-loans/ar-AAH60uu?li=BBnbfcL

[still_one]

1. My question to Representative Cortez is when she borrowed the money, didn't she realize that it was

a loan, and needed to be paid back?

Perhaps if she is interested in forgiving student loans, she can forgive my mortgage while she is at it

when people get a loan, do they not realize that is an obligation that the borrower plans to pay it back?

[FirstLight]

2. ...

The issue is that the loans are very predatory in nature, interest rates well above the norm, and that college shouldn't cost so much to begin with. It's crazy that you can end up with $30K in debt by the time you get a BA... even when going to community college for the first 2 years and transfering. I know, I've been there...still deferring the payments because the degree didn't help me get a better paying job either.

[still_one]

7. colleges shouldn't cost so much to begin with? Who is going to pay the teachers, administrators,

building facilities for lighting, equipment, and all the other costs associated with that?

Whether going to college helps you get a better paying job is beside the point. People take out loans for business and all kinds of ventures that don't work out. That is the way things happen. There are no guarantees

As to your first point though, you are right on target. The student loans are predatory, and not equitable based on prevailing interest rates.

As for the student loan crisis, I am all for restructuring the loans to lower interest rates, or even zero interest rates, but I am not a proponent for forgiving such loans, but the borrower should be allowed the option of filing for bankruptcy.

[lapfog_1]

31. all of us... obviously

we ALL benefit from an educated population.

Look at what happens in the alternative (go to any Dump rally, ask his supporters why Obama wasn't in the Oval Office during 9/11, etc).

[MichMan]

11. Since the Federal government is the issuer of all loans since 2010.

They are the ones that set the interest rates.

[LanternWaste]

3. Is there any indication she did not realize it was loan?

Further, as she was literally making a payment on that loan, I think we may safely presume she did know that it was to be repaid when she borrowed it.

[still_one]

4. She is doing it during a Congressional Hearing, what point do you think she was making?

[virgogal]

28. She's an attention getter,that's all----there are many Dems in the House

yet she gets all of the attention. It mystifies me.

[still_one]

29. Of course, and it is no secret she is an advocate for forgiveness of student loans

and the point she was making

[Tanuki]

5. What was her alternative....give up on going to college and spend her life as a

bartender? Nothing wrong with tending bar, but that isn't a choice that wealthy students have to make. Not wanting to be gouged by predatory lenders is not the same as not wanting to pay off a debt.

[MichMan]

10. I dont recall having a college degree as a requirement for congress.

I must have missed that before.

[EarnestPutz]

20. There is no requirement for a member of congress to be a member....

...of a political party, be a white male or be wealthy, but many of them are. There is no requirement for a member of congress to spend half of their time speaking to wealthy donors, but many of them do.There is no requirement that they vote in lockstep with the worst instincts and prejudices of their constituencies, but many of them do. None of these have anything to do with paying back student loans so in that way at least they are just like your comment.

[MichMan]

22. I disagree that her only choices in life were college or tending bar

The post I replied to stated she either went to college or had to work as a bartender. I struggle that those were the only 2 alternatives available.

I dont believe that having an Economics degree was the reason the voters in her district voted for her last year. I dont live in that district, so I could be incorrect.

[EarnestPutz]

24. MichMan, my apologies. I overeacted (again).

[George II]

30. Her alternative would have been to go to one of the better colleges/universities in the country....

....at a MUCH lower level of tuition.

The City University of New York (CUNY) has extremely low tuition for residents and New York State has scholarships available to residents.

[unblock]

6. it's a perfectly legitimate question of public policy

especially considering the high cost of college education, the general message that people get college is very important (although it's not for everyone), the societal benefit of having an educated populus/workforce, and something that's often overlooked -- that some of the key decisions that lead to the racking up of massive student debt are often made when you're still a minor.


public policy has provided and still provides incentives for mortgagors, because it's been deemed to be in the public interest to encourage home ownership. as homeownership is far more common now than when it was when some of these programs began after wwii, some of these incentives have been scaled back and there's a push to do away with mortgage interest deductibility altogether. that's also a legitimate topic of public policy, although i'm not a fan of removing that deductibility.


to ask whether or not people carrying student loans know it's a loan that needs to be repaid is to put snark and insensitivity in place of a more complete, clear-eyed assessment of the situation. of course it's a loan, of course they know it's meant to be repaid. but they've also been told that college is the ticket to a solid, well-paying job, and the economy hasn't delivered on that promise for many college graduates who did exactly what their government society gave them incentives and encouragement and mass media messages to do.


the real question to my mind is *what* adjustments should be made to improve the situation, not whether or not any should be made at all. i'm not in favor of outright forgiveness of all student loan debt either, but i think there's plenty of room for some reasonable assistance for people who did everything they were supposed to do yet find themselves with unmanageable or highly constricting student loan debt.

[OneGrassRoot]

9. Well said. Thank you. n/t

[Pacifist Patriot]

15. Nicely put.

[still_one]

25. First of all Ocasio-Cortez has made it clear she is for forgiveness of student loans, and supports

Sanders position on this.

I have addressed my position on several responses in this thread on the student loan problem.

I am NOT an advocate of forgiveness of student loans. I am for restructuring the loans at a low or zero interest rates, or allowing the borrower to declare bankruptcy as an option

You indicate that I am "insensitive" to the plight of student loans, as though I never had a student loan

During a Congressional Hearing she choose to call attention to herself making a payment for her student loan, and let enough people know what she was doing.

While you say there is enough room for agreement on this, I am skeptical that anything but forgiveness of such loans is her agenda

She is a very intelligent and bright Congress person. She knows exactly what she is doing

[Cuthbert Allgood]

19. Yes, because fixing a problem that is a heinous problem shouldn't be done

because it doesn't do anything for you.

I was lucky enough to be able to pay for a large percentage of my children's education. My son was able to graduate with no loans. My daughter did a semester abroad so she had small loans (and she got her master's and they are on their own for that, so she had more debt for that). I ABSOLUTELY think student loan debt forgiveness needs to happen even though, for the most part, it won't be a huge boon to my kids. I feel like I would be an ass to say "Yeah, it's a problem, but it won't help me personally to fix it, so fuck it." YMMV.

[tblue37]

23. Her name is Ocasio-Cortez. Fossil would be her father's last name, Cortez her mother's.

In Spanish/Hispanic naming, the patronymic goes first.

[George II]

26. I just bought a new car two weeks ago. We considered paying cash but...

...decided to take out a loan, hoping it'll be forgiven after next year's election.

[still_one]

27. I told my daughter not to worry about her student loan because it will be forgiven after 2020 also

[LisaM]

32. Student loans used to have 2.5 to 3 percent interest. Now they are at high interest rates.

That's a big part of the issue (along with tuition prices going up due to federal subsidies being slashed).

[MichMan]

37. The loan originator is the federal government since 2010

Last edited Wed Sep 11, 2019, 06:35 PM - Edit history (1)

They have been around 4.5% for the last several years. Congress sets the rates yearly based on the 10 year treasury note. Rates are fixed for the life of the loan.

That doesn't seem all that high to me and it is lower or the same as many mortgage rates.

[LisaM]

42. I think that a lot of students supplement with private loans.

You're right, but I don't think that everyone sticks to those loans, they need to bridge them.

[gibraltar72]

8. As many colleges sit on unbelievable endowments

tuition just keeps going up. It has gotten to a pretty ridiculous level.

[George II]

17. Current tuition for the City University of New York today is $6,900 per year for NYC residents....

That's less than $30,000 for a four-year degree, without any assistance (which most students receive) The State of New York awards scholarships up to $1,500 per year regardless of financial need or tuition expenses.

[MichMan]

12. Good for her for paying her obligations

Not sure she deserves accolades for doing so.

[George II]

13. Her remaining $19,000 balance can be paid off in five weeks at $174,000 a year.

Why should people who have jobs with very high salaries have their debt forgiven?

[Pacifist Patriot]

16. Why would you think that is what is being proposed?

[George II]

18. Because that is what has been proposed.

[still_one]

21. Exactly. She is an advocate for forgiveness of student loans

[Act_of_Reparation]

33. I made a student loan payment while AOC was making a student loan payment...

...while she was in a congressional hearing on loans.

[patphil]

34. Highschool kids in this country are oversold on the need of a college education to get decent job.

So many of them go to college when they don't really have a clear idea of what they want to do after college.
They sometimes make choices for courses of study that lead them nowhere.
The only place most of them will go is into debt.
The cost of a college degree is getting higher all the time, and borrowing to pay for college is so easy. It's the paying back that's the challenge.
The sell job also includes the implication that degrees from expensive, private schools will make them more employable.
It's okay if parents can cover the cost, but most can't. The kids start borrowing right away and keep going deeper and deeper into debt for the 4 or more years it takes to get the degree they want.
In many cases it takes a decade or more to pay back their loans even if the graduate is able to get a good job. Some are never able to pay it back.
So what does this mean?
It means that millions of graduates essentially put their lives on hold as far as getting a home and starting a family are concerned. Much of what they make goes to loan companies, while the graduate has very little discretionary income for quality of life issues like a better car, new clothes, something more than a stay-cation, and the many other goods and services that drive our economy.
It's a long term downer for the person involved and for the nation in general.
It was a personal decision to go to college, but now it's like a boat anchor dragging millions of graduates down.

I think the government should step in and help solve the problem of debt by gathering up private student loans and re-issuing them interest free, and perhaps even with a percentage of debt reduction.

Also, high school kids need better counseling on college alternatives.
Not everyone is a good candidate for college, and lots of good jobs don't require it.
If, as time passes, a need for a college degree is determined, then do it later in life.
Also, a lot of people go back to college to get a different degree once they see what they really want in life. For them, the initial run through college didn't get them where they now see they really want to be.
Better to counsel a student not to jump into college life unless they have a clear vision of what they expect to do with that degree.
Right now, counseling seems to be focused on which college you can get into, and applying early.

Patrick Phillips

[Ohioboy]

35. She can, and should, call for action on the issue and that's what she is doing.

It doesn't really matter what AOC wants to do. It depends on the whole body of lawmakers working toward a solution. That is if they can stop fighting long enough to do their jobs. Have the discussion, propose solutions, take votes and go from there. If a lawmaker doesn't like AOC's idea, then that lawmaker should come up with something else. Maybe allowing a loan holder to restructure the loan is the way to go? Who knows, but don't put down AOC just for trying to get a process started.

[brer cat]

36. Why is she sitting "here in this chair"

taking care of personal business while on the taxpayers' dime?

[George II]

39. Yes, I wondered about that too. Congressional hearings are VERY important business....

....and members of Congressional committees should pay 100% attention to the proceedings.

[obamanut2012]

38. The snark in this thread is so, so privileged and so, so appalling

Student loans used to be 1.5-3%, now the interest rate is much higher, it is very, very predatory, much like the mortgage issues in the mid 2000s. People should be be saddled with loans like this. I was told my rate would be 5% when I graduated, but instead it was 11%. Then it was 17%. Because the Feds allowed them to do it. I knew I would have to pay it back, but was told it would be with 5% interest rate. Some kids are being hit with rates much higher.

And, I also believe in student loan forgiveness. I also think higher education should be either free or very, very inexpensive at public schools. We are a rich country, we can afford it. These loans and costs put grads very behind in life. They are regressive.

Some of you on this thread should be ashamed of yourselves, but you won't be.

[smirkymonkey]

40. +1000

[MichMan]

41. You think college is expensive now, wait until it is "free"

Last edited Wed Sep 11, 2019, 08:12 PM - Edit history (1)

Do I favor interest free federal loans ? Yes.
Inexpensive Community College? Sure.
Greater availability of Pell Grants for those of moderate and lower incomes? Absolutely.

Complete forgiveness of all student loans? No.

Right now, students and parents can take out Federal loans with a 4.25% interest rate that is set by congress. Like anything else in life, cost should be a factor in determining what college to attend. It may not make financial sense to go to an expensive college out of state.

Colleges also understand that setting tuition too high will eventually cause enrollment to drop as students select more affordable institutions.

Image a scenario where students and parents dont care what the cost is because it is "free" Why not attend the most expensive college because it isn't costing you anything?

If that was the case, what would be stopping colleges from raising tuition much much higher than it already is?

While maybe not exactly the same, an analogy may be something like car loan forgiveness. Why the heck would I choose a Kia Rio when I could have a loaded Mercedes Benz instead? Hell yes, I want full leather massaging seats, a panoramic sunroof and the fancy infotainment system! After all, neither one is costing me a dime.

[George II]

44. When I was in high school, it was customary to apply to three colleges....

...(application fees were something to consider along with possible tuition).

In order of preference:

Cooper Union, annual tuition of zero, very vigorous admission standards (2,500 applicants, 125 accepted).
Pratt Institute, annual tuition of about $2,000.
City College, annual tuition of zero, almost a cinch to get in but seemed like an extension of high school.

Turns out Pratt Institute accepted me and awarded a $1,000 a year scholarship, City College accepted me and that was looking like where I would wind up attending, and then that letter arrived from Cooper Union - ACCEPTED!!!

(btw, my smart-ass student adviser in high school told me that I'd be lucky to get into City College - damn, I rubbed that CU acceptance letter in his face!!!)

Had I not been accepted to the other two, Pratt Institute at $1,000 per year was going to be tough for us but we would have taken a loan and paid it back. And going to an out of state college with room and board was out of the question. I lived at home throughout my college career.

You make decisions within your means.

[MichMan]

43. How would this be controlled?

In my area, there are three colleges in close proximity to each other

1) Washtenaw Community College with tuition of $4k per year

2) Eastern Michigan University with tuition of $11K per year. Eastern is a mid level state college, nothing fancy

3) University of Michigan with tuition of $14K a year. University of Michigan is quite prestigious and known nationally with high profile sports teams etc.

Given a choice and with zero costs to the student, why wouldn't people decide to attend the most expensive and prestigious school like Michigan?

Also, if you were administrators of Eastern Michigan, why wouldn't you immediately raise your tuition to match U of Michigan, and/or why wouldn't U of M raise their tuition to $20K per year or more? The students won't care because they aren't the ones that are paying it. In fact, they might actually gravitate towards the most expensive schools because, why not?

[George II]

45. Right - you've got billionaires and millionaires sending their children to Harvard, Yale....

...and other very expensive colleges. If we're not going to expect students to pay their loans, instead of paying cash they'll take out loans and let the government pay for their tuition.