Posted on 10/26/2011 6:09:05 PM PDT by Kaslin
Government: President Obama wants student loans to be more like student handouts. Too bad he hasn't learned one of the lessons of the 2008 mortgage crisis: Free money costs plenty.
The global financial crisis has its roots in the U.S. government's politicization of mortgages. Washington decided that all those real-life versions of mean old bank president Mr. Potter from "It's a Wonderful Life" shouldn't just turn into big-hearted Jimmy Stewarts.
No, they should practically become welfare officers, doling out money to people with bad credit ratings to buy homes, without requiring a down payment.
And when this pyramid scheme collapsed, the investors who bought the safe-seeming, sliced-and-diced mortgage debt were left holding the bag.
And millions of Americans lost their jobs.
Making a loan of hundreds of thousands of dollars to someone is serious business, but the government for years systematically pressured mortgage lenders with accusations of racism. Many feared the Department of Justice more than the default risk of their debtors.
Now President Obama proposes applying the same mortgage mistakes to student loans.
On a day on which the College Board reported the cost of public colleges rose 8% about twice the inflation rate Obama unveiled a student loan forgiveness plan.
(Excerpt) Read more at investors.com ...
From what I understand it is only for loans originating after 2008 and not in default. Little help here.
I think it begins with new loans made this year. They will allow loans back to 2008 to be rolled into the new loan.
I caught a creditor who paid his student loan off with an American Express Card then went BK 6 months later.
Who would be stupid enough to make a student loan after this goes into effect? Only Ben Bernanke as he tries to sop up crapola student loan backed bonds in a buyer less market...
Thanks for the clarification.
I am led to believe, from the data available to me, that the US taxpayer is ultimately responsible for the debt of the Student Loans, and /or the “forgiven” portion of these loans.
Am I correct, whole or in part, in my above understanding?
My second question is: Is the current 951 BILLION dollar Student Loan Debt included in the Total National Debt of the US Federal Government?
I caught a creditor who paid his student loan off with an American Express Card then went BK 6 months later.
I meant debtor.
he’s trying to buy back those college voters that are no longer enamored -
“Hes counting on these kids not having a brain yet.”
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Yes and as a little looking around will reveal, with the kind of “education” they are likely to get for their student loan money they probably won’t have a brain when they are forty either!
I knew that wasn’t a serious protest sign at first glance because I couldn’t find any misspelled words!
Regardless of whether the program has some limits, it still really sucks.
I hadn’t heard about this until I was talking with a couple guys about it yesterday who were really very upset. This issue hits home because you’ve got millions of Americans who worked hard to put themselves through college and if they used student loans, paid them back on schedule.
Now you have some OWS protesters show up and Obama starts playing Hugo Chavez and puts in rules forgiving much of the debt.
The whole thing is just a horrible mess. The more the word gets out on this “program” the better for our side.
“It doesn’t cost the taxpayers anything.”
This man is a math-moron......or something far far worse,....
I hate conspiracy theories and am the first one to beat down all the idiocies that people come up with. But this man, ....I’m almost there. How else do you explain this crap?
When “stupid” fails to explain someone’s actions,
“evil” is what is left.
When you eliminate all other possibilities, what remains, no matter how improbable, is the answer.”
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