Obama Loans, Who Collects? The Not-so-Hidden Dangers of Federal Direct Student Lending

National Association of Scholars ^ | March 15, 2010 | Peter Wood

[rmlew]

Why isn't the press talking about Obama and the Democrats nationalizing education?

[rmlew]

ping

[Moorka]

Washington Post owns Kaplan Education is one reason. They are making out like bandits from No Child, direct grants, Pell etc.

Kaplan grad rate is pitiful and the student loan default rate is high. Without Kaplan, WAPO would be fertilizer.

Another reason is the Apollo Group which runs Phoenix University and is a huge donor to dems. The guy who ran Apollo Group, John Sperling is closely allied with the likes of Soros, Herb and Marion Sandler and other corrupt leftists.

[rmlew]

That’s just sad. I had hoped that online educations would be seen as an opportunity for conservatives.

[bamahead]

Since 1965, the federal government has subsidized colleges and universities by guaranteeing loans that students take from private lenders.

Yet another government subsidy that has done FAR more harm than good. This 'reform' won't be much of an improvement.



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[henkster]

One son is almost done with college, but the 2nd starts in 2011. Under nationalized student loans, education will be rationed. My son tests in the top 1% nationally in math, but he doesn’t match the “demographics” necessary. The result is that we may not be able to finance his education, or the education he is qualified for. In the meantime, less qualified candidates will get his spot.

We all suffer because we will have substandard graduates with better degrees lining up for the best jobs.

This administration appears hell-bent on destroying our country.

[rabscuttle385]

It will make American higher education extraordinarily vulnerable to political interference.

Isn't that what No Child Left Behind did?

[rabscuttle385]

IMO, Tea Partiers should make the de-Federalization of education a top priority. That means no NCLB, no more federal financial aid, nothing, nada.

[businessprofessor]

The author misses the major problem with nationalizing student loans. Nationalizing student loans makes higher education an entitlement. The federal government will provide the capital instead of private industry. Federal control relaxes repayment rules eventually making loans into grants.

The Democrats have made the ridiculous assertion that federalizing the program saves money. Subsidies and strict repayment rules were necessary to reduce the risk to private borrowers. Competitive bidding reduces but cannot eliminate the subsidies because students are poor candidates for unsecured loans at favorable interest rates with deferred interest payments. The subsidies however revealed the true cost of the loans. Federalizing the program makes the cost difficult to ascertain and likely to increase substantially.

[UnbelievingScumOnTheOtherSide]

But it is not just the Left that has attempted to tell colleges what to do. Under President Bush, Secretary of Education Margaret Spellings attempted to change the nation’s college curricula...

Unfortunately, the left gets away with so much because the "right" finds reasons to be complicit in unconstitutional power grabs. The "cure" is always worse than the disease.

[rmlew]

Isn't that what No Child Left Behind did?
That was an extension of federal control in primary schools. This is federal control of coleges and universities.

[rabscuttle385]

That was an extension of federal control in primary schools. This is federal control of coleges and universities.

So basically, it's the completion of the Federalization of education?

[cowtowney]

Thanks

[concerned about politics]

The trouble comes from the specter of federal control of American higher education.

It's all about political power.
These students are legal adults and should be treated like adults. They don't need mommy and daddy government holding their hands anymore.

If you see a collage student, call him or her "child". If they ask why, tell them about Obomas baby sitting bill. He says they're not grown up enough to take care of themselves.

[cowtowney]

Subsidizing student loans will raise the cost of college even further. Then, when the students can’t pay it back, they have to go to work for the Gubmint to pay it off.

This is the company store all over again.

[chilltherats]

I didn’t need an article of this length to figure out that this is all about reparations. It’s a no-brainer.

[Gabrial]

Send Pelosi an email and let her know what you think of her “healthcare” bill.

http://www.speaker.gov/contact/comment_email

[chilltherats]

All he has to do is lie about his ethnicity.

The bastards don’t deserve the respect of the truth, so I’d just lie on the forms whenever you need to.

The best way to beat the bastards at their own corrupt game is to break its back. If all applicants all claim minority status, then there is no minority status.

[Force of Truth]

Whites, Christians, and Conservatives need not apply.

[Force of Truth]

Subsidizing student loans will raise the cost of college even further. Then, when the students can’t pay it back, they have to go to work for the Gubmint to pay it off.

Here in South Carolina we adopted a state lottery in order to fund education. Each student is give $1,000 or so dollars for free just to attend college. So guess what happened as a result? The cost of education went way up and continues to do so, because the demand is now up and the schools know that an nobody will notice the increase because of the free money everyone is getting.

Higher education in America is not worth the price tag in most cases and I think most people could learn on their own for way less money and without the liberal brainwashing.