What's so great about government programs?

[Matt J]

I stand correctd, I wasn't aware of that. I'm curious though how are they more cost effective than private loans? Also, can you give an example of the superior service you received?

My understanding on the savings are that the origination and disbursement fees are minute compared to private loans if a student is even charged. Direct Lending's customer service is US based, whereas SallieMae shipped it over to India years ago.

SallieMae was a GSE, just like Freddie and Fannie. Being a GSE or not a GSE doesn't appear to have had much affect on stability through this downturn.

SallieMae started as Direct Lending under the government. It was then transitioned to a GSE and then finally became fully private.

 

[poppy]

National Park Service ----------------------------Beautiful places in America preserved for future generations.


Rural Electrification Administration

(This is another loan program) So what, look what it acheived compared to the private utilities at the time.

Public Libraries

Reasonable example, they don't make a lot of money in most cases, so private investment is rare. Why do they need to make money?

Public Health Service

That's rather broad based, but the largest programs are currently some of the programs Congress is trying to fix due to massive cost over runs. Not a good example generally when your advocating new, costly departments under this administration. There are many agencies within the PHS that help protect our nations health.

National Highway Traffic Safety Administration

IMHO a horrible example. NHTSA isn't so much owned and controlled by us, it's controlled by special interests. Excellent example, besides the educational programs and recalls they have forced auto makers to build safer cars resulting in countless lives saved.

Department of Agriculture

USDA

Your definition of "government that works" and mine are two completely different definitions. ;-) Education, research, trade and marketing for the American farmer among many other programs

Public Schools

Probably should be spun off as another thread. Clearly our public school system has major issues. Has educated millions of Americans placing us in the top 15 nations for literacy although I agree we should work to be much much higher.

Veterans Administration

Have you ever actually had to deal with this institution? Can you give some examples of how well run it is? Yes, top notch when properly funded.

FEMA (pre Bush)

You just lost your argument. :roll: Bush lost FEMA


Hence the point of this thread.

I believe you just made my point by mocking many of them. They aren't perfect but they acheive their objective. Fema did a good job before Bush planted his cronies in it and place it under Homeland Security. I've been dealing with the VA for 40 Yrs. so yes, they do a fantastic job. In fact I have a close friend who will only use the VA because of the level of care he receives.

 

[beachmouse]

I stand correctd, I wasn't aware of that. I'm curious though how are they more cost effective than private loans? Also, can you give an example of the superior service you received?

From a borrower standpoint, they're good at offering multiple types of repayment plans (10 year, 20 year, percentage of income based) and they're also very easy to work with when it comes to deferrment of loans when you're unemployed or medically unable to work long term. End of year interest summaries for tax purposes were sent out in a timely manner; if we had a question about the loan, customer service was always easy to reach by telephone.

Bill would give control of student loans to federal government | montgomeryadvertiser.com | Montgomery Advertiser

Dorenda Adams, director of financial aid at Alabama State University, said ASU this sum*mer also went to direct lending after students faced those exact circumstances last year.
"We had serious problems with students getting their loan money at least a month later be*cause private lenders didn't have the money," she said.
"We have a lot of needy stu*dents, so this will be beneficial to them. With direct lending they get their money much soon*er, and it's guaranteed in a time*ly manner so they can buy books, and other educational ex*penses."

Turning control over to the government would save taxpay*ers an estimated $87 billion, ac*cording to the Congressional Budget Office.

In addition, the CBO said that when administrative costs and market conditions are consid*ered, the savings from switching to direct government lending could be much lower, $47 billion instead of $87 billion.

 

[Winnie]

So there's been a lot of harping on this board about private businesses, and a general defense of the idea that introducing government programs funded by taxpayers into private industry is a good idea.

It seems to me the private, anti-government program advocates have been doing most of the defending, with very little input as to why public systems are better.

So I'm curious, we all get involved with government from time to time, whether it's on April 15th or through government programs.. I'd like to hear about people's experiences in this area. What is your general sense of how government programs run? How do the programs you interact with function, how efficient are they, and are they simpler to work with or more humanitarian than the private businesses you deal with every day?

I think the only reason public systems are better than private is the cost to the end user.

For example, public libraries are only better than book stores because in most cases, you take material on loan at no cost. Book stores get the latest books much more quickly and in a greater variety than public libraries do.

Or public roadways vs toll roads. In most cases a transportation corridor would not be built nearly as soon nor kept up as well if it were public.

If money were no object to the users, I think the private sector would always provide better services and materials than the public sector could.

 

[kkddbb]

I believe you just made my point by mocking many of them. They aren't perfect but they acheive their objective. Fema did a good job before Bush planted his cronies in it and place it under Homeland Security. I've been dealing with the VA for 40 Yrs. so yes, they do a fantastic job. In fact I have a close friend who will only use the VA because of the level of care he receives.

 

[Matt J]

From a borrower standpoint, they're good at offering multiple types of repayment plans (10 year, 20 year, percentage of income based) and they're also very easy to work with when it comes to deferrment of loans when you're unemployed or medically unable to work long term. End of year interest summaries for tax purposes were sent out in a timely manner; if we had a question about the loan, customer service was always easy to reach by telephone.

Bill would give control of student loans to federal government | montgomeryadvertiser.com | Montgomery Advertiser

Just to clarify every Stafford loan is the same. Repayment, deferment, lower payment options, and even forbearance are mandated by the promissory note which is the same each year. Depending on the time you took out the loan could change some minor issues, but they are all the same.

Interest payment notices are required, but generally most student loan servicers won't send out a notice if the amount paid is under $600.00 as it generally isn't sufficient to make a difference on taxes.

Beach Mouse it sounds like you have a pretty good handle on your loans. The best advice I can give you is to get a copy of the promissory note and read the whole thing. Some are up to 20 pages long, but it does spell out everything that can ever happen.

 

[beachmouse]

We paid off the loans early a couple years back, so all is financially well in that regard.

 

[Lynnie]

Competition (generally only in the private sector) should regulate the specific industries; not more government programs.

 

[Here4Good]

Competition (generally only in the private sector) should regulate the specific industries; not more government programs.

Sorry, but it's a little too soon after the mortgage loan/CDS debacle for me to agree with you on that one.

Industries have too long a history of not doing things which might be financially detrimental in the short run and beneficial to their neighbors/co-citizens in the long run, until they are required by law to do so.

 

[Lynnie]

Sorry, but it's a little too soon after the mortgage loan/CDS debacle for me to agree with you on that one.

Industries have too long a history of not doing things which might be financially detrimental in the short run and beneficial to their neighbors/co-citizens in the long run, until they are required by law to do so.

I agree; that's why I used the word "should." Hopefully, lessons have been learned by the mortgage debaucle.
But, if gov't programs take over the private sector, will we have the potential to have healthy competition? Or, will be forced into whatever the gov't says?