EDITORIAL: Back door to a public option--Federalization of college loans teaches health care lesson

The Washington Times ^ | September 18, 2009 | Editorial

[jazusamo]

President Obama and House Speaker Nancy Pelosi claim that a new government health insurance option would strengthen competition and lower health care costs. If they really believe that theory, it doesn't explain why they are pushing a complete government takeover of the college-loan industry 16 years after federal tuition loans were created to compete with loans by private lenders. The student-loan power grab offers a cautionary tale that is relevant to the health care debate.

This wasteful effort demonstrates how publicly financed alternatives to the private sector can be a slippery slope. It's common practice for government to stick its foot in the door before taking over an industry.

The House approved legislation yesterday that would eliminate the major federal student loan guarantee program. Known as the Federal Family Education Loan (FFEL) program, it insures private lenders against defaults. If approved by the Senate, the bill would make the Federal Direct Loan Program (FDLP) the de facto national student-loan lender using taxpayer dollars.

[TroutGuy]

My problem isn’t the government being involved in student loans (they already are) as much as the realization that somewhere down the road there will be a crisis and then Congress will pass some 1 trillion dollar “bailout” of that program to forgive loans.

[concerned about politics]

President Obama and House Speaker Nancy Pelosi claim that a new government health insurance option would strengthen competition and lower health care costs. If they really believe that theory

...Then way not pass the school choice bill? Why not open up school loans to the banks? Why not allow Insurance companies to flourish? Why have only a one party rule like they have today? Why not include the Republicans in the political discussions on Capital hill, and pass a voter ID bill to guarantee political competition at the voting booth?

Yes. Private sector competition is a very good thing as long as the government stays out of it.

[jazusamo]

I believe by them taking over the program that’s exactly where it’s going, plus they’ll be the ones making the loans in each individual school, it will turn into a taxpayer giveaway program.

[concerned about politics]

down the road there will be a crisis and then Congress will pass some 1 trillion dollar “bailout” of that program to forgive loans.

.....But only for certain politically correct groups. The rest will be charged an outrageous interest rate and be heavily taxed. You know how the democrat party works. "It's the vote, stupid."

[concerned about politics]

plus they’ll be the ones making the loans in each individual school, it will turn into a taxpayer giveaway program.

And the schools will be forced to teach only those things dictated by the left wing special interest groups. Schools that teach Americanism will be closed and refereed to as "terrorist" institutions.
Hey, it happened under the socialist rule in Germany. Now, the socialists are in charge here, too.

[Mogollon]

No doubt - White male hetero’s need not apply for government-run college loans.

[jazusamo]

I don’t doubt that’s what will happen in the majority of colleges that are left wing already, there will be few schools remaining to get a real education.

[musicman]

I don't think there will have to be a "bailout" for the Obamassiah student loan program.

In the contract "fine print" it will probably state that after receiving their Gov't discounted "Marxist" degrees, a "small ammount" of time will be required to serve in the Obamassiah Civillian Military Community Organization Corps.

Those who have "unpaid balances" will simply have to serve "a while longer" to "pay off" their Marxist Ed debt.

[Major Matt Mason]

The Fannie Mae/Freddie Mac model comes to student loans. Another taxpayer bailout in the making, given the fact that many deadbeats won't payoff their loans. Washington still doesn't get it. It appears the next Tea Party will require a couple million participants, only this time we'll stay to clean up the corruption in DC.

[Vaduz]

Obama + Pelosi = Loop holes.

[frposty]

Government is handing out too much money period. Trying to make life easy for everyone only makes everyone stupid and lazy and smothers their individuality, thus making them also boring.

[OpusatFR]

“.....But only for certain politically correct groups. The rest will be charged an outrageous interest rate and be heavily taxed. You know how the democrat party works. “It’s the vote, stupid.”

All of this from the Healthcare bill to this Student Loan takeover to Fannie Mae is being used as a back door method of reparations. It isn’t a secret and can’t be fought on that basis.

All of the government takeovers must be fought on the basis of cost alone.

It’s the Money, Stupid! It’s the Taxes, Stupid! It’s the color green, Stupid!

[REPANDPROUDOFIT]

....somewhere down the road there will be a crisis and then Congress will pass some 1 trillion dollar “bailout” of that program to forgive loans....

Just look at the story in this post:

http://www.freerepublic.com/focus/f-news/2339926/posts

In this case, the student loans went directly to the "student", instead of to the "institution of higher learning", and said student then kept the money and never enrolled in school. She STOLE $250,000 and lived high on the hog with student loan money. She is in jail. Well boo hoo! Our money is still gone!