Posted on 02/10/2015 10:01:03 AM PST by Sean_Anthony
How did the federal student loan program rack up such massive debt so quickly? Let's take a look at Obama's recent reform efforts and programs to help provide relief to student borrowers.
A few days ago, Politico revealed a little gem hidden in the Obama budget:
“In obscure data tables buried deep in its 2016 budget proposal, the Obama administration revealed this week that its student loan program had a $21.8 billion shortfall last year, apparently the largest ever recorded for any government credit program.”
That’s a nearly $22 billion loss—for one program, for one year. Politico described how that the amount is greater than the budgets of the EPA and Interior Department combined, or the NASA program’s budget. But it will be covered entirely by the taxpayer anyway.
How did the federal student loan program rack up such massive debt so quickly? Let’s take a look at Obama’s recent reform efforts and programs to help provide relief to student borrowers.
(Excerpt) Read more at canadafreepress.com ...
I thought that one of the justifications for this program was that private banks shouldn’t profit from student loans. How did the government manage to lose so much money on something that was purportedly profitable in the private sector?
They get on TV beg for people to go back to school. We have to know its just another money making scheme by the crook govt.
More printed money and debt to paper over the mistakes and excesses of leftist government.
Progressive government is impossible with the Federal Reserve.
Barry’s budget is strictly shovel ready...
From my position in the legal system, I’d suggest that any analysis of this “problem” needs be two-pronged. There is the issues concerning the loans, i.e., were they good, is there a chance of repayment, are the rates appropriate, etc.?
But the second prong, absolutely has to examine the so-called “students.” These “students” often times have no intention of using the loans for school. They are turned down for a car or home loan and use the low rate and readily available “student loan” to buy the car or get a down payment for a mortgage that they otherwise couldn’t qualify for. Then they default and Obama is oh so sympathetic. The other common use of “student” loans is to post bond or hire an attorney in a criminal matter. I see it every day.
I would guess that fully have of the loss on these loans are fraudulent or near fraudulent. At best, the monies were not used for the intended purposes.
I am wholly unsympathetic.
Oldplayer
Student loan debt to the government is a modern day debt slavery. The Feds lend money that they borrowed, the Federal Reserve makes a dollar for every dollar they invent out of thin air, lefty professors and universities hanging out in massive public palaces the free market would never allow for make bank, and students rack up debt that they can never escape. If the students “join the public moocher team by working for the federal government or a favored public occupation they can get the debt forgiven after a number of years.
It is totally sickening.
So, my daughter was acting foolishly when she prepaid her student debt????
It's war on savers and the fiscally prudent.
Then again, who did your daughter vote for?
Federal bailout or tax on the midde class to bailout these irresponsible borrowers?
People who play by the rules are Chumps..... that is the message!
It was VERY difficult for us to pay back the Student Defenese Loans. WHY teach the citizens of America that they can make any mistake and the TAXPAYERS will be there to bail them out! NO...they need to pay. Life is difficult at times, and people DO NEED to recognize that every choice does bear a consequence. Make poor life choices, and bear the results. PAY THE LOANS, it isn’t the American Taxpayers duty to pay for the foolish ambitions of people who never took a grave concern to be RESPONSIBLE.
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