I feel like the federal lending program that was initially designed to make college education affordable to everyone in the country is becoming vaguely reminiscent of the subprime lending debacle of 2008…
The administration’s attempt at providing affordable education to the nation program is resulting in a huge pile of debt for us, one which is now FINALLY becoming a concern. Could that perhaps be because we don’t actually HAVE the money to lend, and while students are amassing loan debts, we as a country are doing the same? Consider this exchange…
Democrats: “Let’s augment the federal lending program to give out even more money with fewer borrower restrictions so that anyone who wants to go to college CAN! Doesn’t that sound like a great plan?”
Republicans: “Ummm, NO, because we don’t have the money to pay for this type of program!”
Democrats: “Sure we do! We will just get it from our friends abroad! And of course they will give us great rates because we are such good return customers!”
Republicans: “Is that really responsible? What kinds of criteria will we have for prospective borrowers? What will be the repayment terms?”
Democrats: “Lending criteria? Repayment terms? Don’t worry – we can figure it out later! Borrowers just have to want to go to college! If they can’t repay the money, no matter. Our deficit is so high already, it won’t make too much more of an impact.”
OK, the convo probably didn’t go EXACTLY the way I laid it out, but you get the idea.
According to the Wall Street Journal, student loan debt rose $42 billion in the third quarter alone.
But the problem is that 93% of loans are issued by the federal government now, and there is virtually no backing for them. Borrowers do not need to disclose the type of education they want to pursue, nor does the government seem to take credit scores into account when dispensing the monies.
The Obama Administration has continually been reckless with our money, Save Jerseyans, and extremely short-sighted.
Obama has made it much easier for anyone to attend college, but he failed to be more strategic in his plans, so that these students could actually graduate with the hopes of finding a job that can enable them to repay the debt they accumulated as students. This administration simply does not value the benefits of job creation, so in effect, it is like Obama saying to the American people, “I need you to give me some of your hard-earned money so I can give it to others who may not be able to pay it back because I have not done my job over the past four years.”
If CEOs were that truthful when pitching to potential investors, do you really think people would take such gambles with their money, in hopes of making a return that may or may not actually happen?