Paperwork has consequences. In this case billions in consequences.
Why is college so expensive? Well, subsidize anything like we have a college education in this country and the price of that thing will rise. It’s not complicated and nothing’s “free.”
I like solar power. Who doesn’t? We have a giant nuclear reactor in the sky and we should make better use of it for energy purchases. However the “policy makers” in Washington continue to screw up the solar equation.
That is a pretty significant stat. It certainly does not indicate upward mobility for today’s youth.
It also indicates how completely out of whack our crony system of student debt is. The colleges love it. The students well, they aren’t able to pay the money they were loaned back. So they don’t love it so much.
Now, these statistics do not mean that taxpayers will need to pick up the tab for 46 percent of the outstanding student loan balance,
Sugar is bad for Americans in more ways than one. It makes everyday folks fat, but it makes politicians even fatter.
The student loan program has long been a mess. In 2009 the government cut out the middleman and made it even worse. (If you can believe it.)
Student loans are couched as aid to students. They really are streams of income from the federal government straight to the massive university system. The administrators, the full professors, the real estate developers, etc. etc. But the student is on the hook. The student is just the conduit for this cash.
Who needs deposits when one has the Fed and taxpayers? Market mechanism? We don’t need no stinking market mechanism!
The recent proposal from the president to have the middle class pay for community college for “everyone” (Largely by raising taxes on 529 plans. How stupid is that?) is little more than an attempt to buy votes from potential students who don’t know better and to reward a university industry which overwhelmingly supports the president.
Again it is the middle class, not the rich (as has been sold) which will pay for this.
Below is a not so modest proposal for a better way.
Now go become a debt slave…I mean go get a college loan!
Easier credit for student borrowers means tuitions go up. This is turn means higher debt loads for students. Then the cycle repeats.
“Hey taxpayer…I’m Boeing. Subsidize my loan or else!”
Another excellent article from Tim Carney. If you really want to understand the politics of the Export-Import Bank you need to read it.
Not renewing Ex-Im is a good start. But just a start. (And we’re not even there yet.) The bank is just the first of the crony programs which need to be unwound in the months and years ahead.
The Fed Agrees.
It’s easy to make a pile of dough if you get it for nothing and then lend it out at interest.
We have written many times about the student debt bubble. It’s been popping for the past year or so. But things are accelerating.
It makes no sense at all that the government makes loans available to everyone who wants to go to college. Who would lend $50,000 or more to an 18 year old who has never held a job, maybe has never paid a bill, and who is interested in majoring in drama?
Another great (and simple) chart showing how your congressperson voted on some of the most important pieces of legislation of the last 5 years.