How Free Market Policies Worsened The Student Debt Crisis

[skews13]

For the history. Back in the 1990s, when the Newt Gingrich caucus won back control of the House and Senate from the Democrats, one of the first major policies that they demanded was to undo the ‘93 student loan reform bill, and make the student loan industry into a ‘’free market.’’ What that really meant was that Republicans as well as their big-money donors in the loan industry were angry that the Clinton administration was by-passing private lenders through direct federal lending. How were they supposed to achieve this ambitious goal of getting the government out of the way?


How free-market policies worsened the student loan debt crisis

 

[mikegriffith1]

LOL! I guess the OP's author is unaware that repayment of student loans has dropped substantially because word has spread that Uncle Sam is very lax about collecting repayment for federal student loans and because Congress has created all kinds of ways for people to avoid repaying their student loans.

Student Loans: the Taxpayers Lose Again

Back in the days when student loans were much harder to get, college tuition was far, far cheaper and many more people worked their way through college, got an education, and emerged with little or no loan debt.

 

[JLW]

LOL! I guess the OP's author is unaware that repayment of student loans has dropped substantially because word has spread that Uncle Sam is very lax about collecting repayment for federal student loans and because Congress has created all kinds of ways for people to avoid repaying their student loans.

Student Loans: the Taxpayers Lose Again

Back in the days when student loans were much harder to get, college tuition was far, far cheaper and many more people worked their way through college, got an education, and emerged with little or no loan debt.

Your analysis is wrong. Student loan debt is NOT dischargable in bankruptcy. Student loan debt is responsible for poor credit scores and lower living standards. The government programs that set aside some student loans were for the frauds and scams that were for-profit universities. The bottom is these students must still pay.

 

[BlackSand]

For the history. Back in the 1990s, when the Newt Gingrich caucus won back control of the House and Senate from the Democrats, one of the first major policies that they demanded was to undo the ‘93 student loan reform bill, and make the student loan industry into a ‘’free market.’’ What that really meant was that Republicans as well as their big-money donors in the loan industry were angry that the Clinton administration was by-passing private lenders through direct federal lending. How were they supposed to achieve this ambitious goal of getting the government out of the way?


How free-market policies worsened the student loan debt crisis

Why should I care about people who make poor choices and go into debt they cannot repay ...

There are ways to earn money for college that do not require unfunded liabilities.
Whether those liabilities are public (taxpayer) or private doesn't make a difference.

If you cannot afford the debt ... Stay the fuck out of debt ...

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