The federal government is going to do the same thing to higher education lending that they did to the mortgage business. Worse.
Is there anything that these people do not want to intentionally, deliberately destroy and then take over?
They know exactly what they are doing.
When is time for good men and women to fight evil?
When?
Before all major forces are alligned on the side of evil or before?
Minting money by the federal government is constitutional, managing the economy isn’t. Nothing educational is constitutional.
teh Feds know that the game is over when the propaganda indoctrination mills all fold and go online...
http://www.straighterline.com/
Obama and the Democrats could screw up a Nocturnal emission.
Does anyone believe the federal student loans will go to schools that do not toe the marxist line?
This analysis missing the essential difference between the private and direct lending programs. The essential difference is the source of financing. The private system was financed by private investors. Banks sold student loans to private investors. The subsidies and loan terms were necessary to ensure a private market for the student debt. From the government’s perspective, the subsidies were the entitlement cost. The subsidies were an honest accounting of the cost to provide the entitlement.
Direct lending eliminates private financing. It does not eliminate the services of the middleman. The loans still must be originated, serviced, and guaranteed. However, the federal government must now provide complete financing. There is also renewed pressure to increase the subsidy. Students have income contigent repayment and loan foregiveness. With Congress completely in charge, there will be pressure to increase subsidies. The Democrats want to make higher education a federal entitlement. They can foregive loans on politically correct employment such as government and non profit areas.
The servicing quality will become worse for students. The direct lending program has a number of no bid contracts for non profit groups (mostly in Democrat districts). The servicers provide poor systems compared to the private sector systems available.
Overall the tax payer will be stuck with a huge new burden. There are no savings from nationalizing the student loan industry. There are only future taxpayer costs.
So private banks are crying about not getting government subsidies again?