Posted on 09/13/2009 2:58:28 PM PDT by blueyon
The furor over President Obama's trillion-dollar restructuring of American health care has left his other trillion-dollar plan starved for attention. That's how much the federal balance sheet will expand over the next decade if Mr. Obama can convince Congress to approve his pending takeover of the student-loan market.
The Obama plan calls for the U.S. Department of Education to move from its current 20% share of the student-loan origination market to 80% on July 1, 2010, when private lenders will be barred from making government-guaranteed loans. The remaining 20% of the market that is now completely private will likely shrink further as lenders try to comply with regulations Congress created last year. Starting next summer, taxpayers will have to put up roughly $100 billion per year to lend to students. ***
For decades, loans carrying a federal guarantee have been the most common way of borrowing for college. After raising money in the private capital markets, lenders made the loans, paying a fee to the government for each one. The government covered most of the cost of defaults while allowing the private lenders to make a regulated return.
(Excerpt) Read more at online.wsj.com ...
Hey - I paid off my student loan! Don’t look at me ...
Well hey, liberal communist college professors really do deserve those six and seven figure salaries - so fork it over America. :)
I took advantage of tuition reimbursement for a few classes, but overall, I saved and paid as I went, and I am glad I did it that way. For the money I spent, I did not sit around in liberal indoctrination classes.
The list, ping
If they dropped any Govt guarantees of student loans, tuitions would drop almost by the same amount.
Our University system needs to take a course at their own school of business and figure out how to be more productive and utilize assets better. They will never learn if the govt continues to bail them out by making student loan limits higher and higher. This is similiar to Fannie Mae chasing high priced housing in the balloon market.
This is already well under way. My loans were just sold to the Dept. of Ed last month. And, in a display of utmost efficiency, I got 4 different letters from the government informing me of the change.
"Make it easier" also means "skyrocketing tuition costs", as if they weren't skyrocketing fast enough.
Never mind the consequences, it makes me feel good.
for all their indoctrination work to keep Democrats in power. The MSM is woefully propagandizing for the Democrats for free. They'll demand their trillion dollar payola at some point.
This isn't about the loans, which I believe are not terribly profitable (or unprofitable, although government can always find a way to run a business less efficiently). It is about manipulating the behavior of the borrowers. Do this or that in service of the government, and large chunks of the loans will be forgiven.
So what it is really about is transferring wealth through publicly funded tuition payments, and eventually economic power through tuition for service.
Government loans made for more kids shooting for the same number of seats. Prices went up.
are you out of school?
ping
DING DING DING! No more calls folks, we have a winner.
When he succeeds in taking over more and more businesses, does that mean we all become government employees, eligible for the best health care and retirement plans??? Doesn’t that defeat his purpose? Who will pay if we all work for Uncle Barack??
I just posted treasury money market guarantee program expires this week 09-18-09 if you want to read it.
http://www.freerepublic.com/focus/f-news/2338874/posts
Yes, graduated in June.
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