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Government inflated the college loan bubble, but Obama isn’t fixing it

November 1, 2011
Glenn Harlan Reynolds, NY Post

Screw U

It’s officially a crisis. Student loan debt has hit the $1 trillion mark, exceeding Americans’ total credit card indebtedness. Unemployed graduates with huge loan balances are camping out in “Occupy” camps — the Hoovervilles of our age — around the nation. And President Obama, perhaps afraid those camps will be dubbed “Obamavilles,” as indeed they have already been by some, has unveiled a new proposal that promises to help graduates who are drowning in debt.

Unfortunately, “promises” is the correct word. Though unveiled with much fanfare, the Obama proposal doesn’t really do much. First, as the Chronicle of Higher Education pointed out in an article characterizing it as mostly political, “The benefit is available only to current students. Those jobless college graduates who are protesting on Wall Street and at similar events elsewhere won’t qualify.”

And now… the rest of the story. …..

One Comment leave one →
  1. Argus permalink
    November 2, 2011 3:00 am

    Writing off all those victims currently in debt; I’d suggest that reversion to Free Market principles would stop the problem.

    No more Govt funds of ANY kind to Colleges—let them fund their own way by fees, earnings, or private endowments.
    No more loans to students—but don’t worry, removing subsidies will cause the cost of tuition to plummet. Hang in there.

    Failing that, all would-be students should do a cost-benefit analysis in light of prevailing conditions: is it better to take out a mortgage (but without the house) to get a burger-flipper degree in four years time, or just go straight into flipping burgers (i.e. a job with no loan repayments for the rest of your life)? Put me down for burger …

    Even better—class distinctions aside, why not an apprenticeship? Get a portable trade, be paid whilst learning? Not the same cachet as a degree, but what’s more important?

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