Posted on 11/30/2012 6:12:46 AM PST by chessplayer
A possible $1 trillion bailout is coming—and soon.
America’s now-nationalized student loan industry just reached a value of $1 trillion, according to Citigroup, growing at a 20 percent-per-year pace. Since President Obama nationalized the industry (a tacked-on provision of the Obamacare bill), tuition has gone up 25 percent and the three-year default rate is at a record 13.4 percent.
(Excerpt) Read more at breitbart.com ...
Do we, like, get fries with that, or something?
At this point we're just waiting for the feral government to commence with the mass-murders.
“The problem is ...at this point, it is not just 0bama. It is all those people who voted for him too.”
That is so sad. There are those of us who teach our children to be honest and thrifty by paying their debts. Then the gov’t (nanny) comes along and throws that all to hell.
The communists are doing exactly what they promised by incrementally destroying the social and economic norms that made us the greatest country on Earth for many years.
It’s heart-breaking to see the USA swirling in the toilet.
“one idea to reduce college cost is to reduce administrative costs.”
Yes, if that was the goal, this idea is great - but the goal here is to create more dependance, more “democrat” voters, more useful idiots and mostly - more POWER to the government.
Everything is just bass-ackwards now. smh
“You paid yours off? Well, I hope you’ve learned your lesson that hard work and responsibility are now punished in this country. We reward those with their hands out. ;)”
Not only paid mine off, but also encouraged my college-aged kids to choose schools they could afford without borrowing much rather than enroll in the more prestigious schools they were also accepted to, and even encouraged one to pre-pay the interest on his student loan before graduation.
How stupid was that?!!!
A while back, at the counter Beck , Jon Stewart Stephan Colbert restore sanity rally ...a group of current students took turns on stage talking about their school loans and demanded free education.
College Presidents have to be the most economically stupid people in the United States. They should all be required to take a one year sabbatical and run a shoe store or a plumbing busness for a year, just to get some fundamental economic reality injected into their dreamy skulls.
No problem, he’ll just take the money from the Parents 401k plan, plenty of money there...
Obama did the same thing with SSI disability, which was passed out like candy in the months before the election. I'm a notary-on-wheels and did scores of these for the lawyers. Suddenly it stopped the first week of November (notice the TV commercials for getting your SSI appeal also stopped).
Wow, no one seems to get it.
This “student loan” garbage is the “Education Bubble” coming to its inevitable end, just as the “Housing Bubble” did a few years ago.
The students were getting the same “education” you could get 10 years ago at a fraction of the price.
Government student loans were a way to boil this bubble and skyrocket tuition costs, throwing taxpayer money to the Governments favorite union, the so-called “educators”.
I don’t know about the rest of you, but I am getting d%&mn sick and tired of hearing about the sacred cow of “Education”!
What passes for education these days appears worthless, anyway, so this orgy of spending is all just pork, going to people who should be out trying to find a job where thay could do something productive. If we could kick their a$$es out of the public trough, they might just end up on our side.
Actually they are not really bailing out the students but the colleges and universities, with their outrageous tuitions and fees, overpaid underworked professors and administrators, exorbitant salaries and benefits, who were and are the beneficiaries of all these student loans.
I have two grandkids graduating in May. They have no debt due to working and parents’ sacrificing. So, would my grandkids have been better off borrowing and defaulting. We have also all paid off our mortgages. What schmucks we are. I despise liberalism.
It is sad. I remember back in the bad old 60’s and 70’s while I was in school that parents and teachers pounded into our heads that we could “pay now and play later” by studying and going to college to train in a realistic field, and keeping ourselves legally “clean” or, if we chose to goof off at school, do drugs or otherwise get ourselves in trouble, we could “play now but pay later” through lost job opportunities and lack of education. That has totally been turned around. Now those who decided to “play now” demand those who “paid now” foot the bill to raise the standard of living for the “play now”. It totally turns around conventional wisdom.
Turning American values around has been going on a long time though. Take a look at Disney's scrubbing of the old fairy tales meant to teach real values and consequences of poor decisions. The most egregious to me is the Little Mermaid where, instead learning a hard life lesson, Ariel gets her prince and lives happily ever after. Disney has totally ruined the original messages of those tales in favor of feel-good, kids-are-brilliant-and-parents-are-idiots tripe.
There are many other examples of values turned upside-down: the entrepreneur is now demonized and the homeless beatified; the decent hardworking kid is ignored or even vilified while the pregnant druggie is showered with benefits and attention; blue-collar (i.e., labor union members) are heroic while white-collar people are greedy; broken families are awesome while intact families are highly dysfunctional below the surface. I know in the Bible it says that in the last days men shall call good evil and evil good. We are at that point.
Welcome to the “new normal”. Work hard...you’re chump. Feel responsible for your actions...you are a fool. Live within your means...you are an idiot. Have some personal integrity...you are a moron. ...and so forth. nobama is the emperor of mentally-diseased subhumans. Happy times are here again. Everything is free.
I did not mean to imply ex post facto.
Let the law stand for every new loan application, and watch university financial offices change their position on accepting students that they are pretty sure will never graduate, work productively and pay back their loans.
They could start by eliminating every program that includes the word “studies” — as in women’s studies, native American studies, lgbtx studies,... None of those programs equip a graduate to do anything but teach
women’s studies, native American studies, lgbtx studies,...
Your idea is a good one. I would only add that the amount available for loan should decrease a few hundred every year (starting in 4 years) to phase out the program.
That's exactly correct. Go back to the way the Bankruptcy Code was in 1978, when the first payment on the loan had to be due more than five years prior to when the bankruptcy was filed before it was dischargeable. After all, bankruptcy is the system Congress has set up to deal with those who cannot pay their debts, with all the elaborate "means testing" the code now requires, so why make an exception for student loan debtors.
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