Great! Go into debt to the Feds for an overpriced education.
Have you ever wondered why college inflation is worse than health insurance inflation?
not dogshit, he never wonders about anything. ever.
The congress (along with the president have rolled the college education loan program already passed last October into the healthcare bill for the purpose of helping the healthcare bill show savings to the annual deficit. They are now claiming $65-billion over a period of 10 years. That’s just $6.5 billion a year. Consider that is only about one one-thousandth of next year's federal budget The intent is to use the calculated savings from it to help the healthcare bill make a better show of savings.
Shouldn’t we be suspicious why they would want virtually everyone seeking aid for a college education to have to go to the government to get their financial aid? Isn’t it obvious that that situation promotes influencing educational priorities, choices, and the selection of career fields by applicants....or even a government bureaucracy (part of the Party of Government) deciding who will get such aid in the future? Can anyone imagine a 'yes' to loans to Democrats, and a 'no' to loans to Republicans?
In an article in the WSJ (September 2009) titled
Obama Plans Government Takeover of Student Loans - WSJ.com and subtitled “Congratulations. You are about to own 100 billion a year in student loans”
“ “ Democrats have claimed their plan "saves" $87 billion in mandatory spending by cutting out the private middlemen, and the Congressional Budget Office has dutifully "scored" $87 billion in mandatory "savings" (or a net of $80 billion after subtracting administrative costs).
But in a remarkable letter to Senator Judd Gregg, CBO Director Douglas Elmendorf admits that government accounting is bogus. He writes that the statutory methodology "does not include the cost to the government stemming from the risk that the cash flows may be less than the amount projected (that is, that defaults could be higher than projected)." Mr. Elmendorf further notes that the government's accounting system is specifically skewed to make direct loans from the government appear to cost much less than guaranteed loans made by private lenders.
He says the real "savings" are only $47 billion, even though, in a deception that would be criminal fraud if it weren't mandated by Congress, the official estimate remains at [this time at] $80 billion.
Even the unofficial number is dubious. The government has been claiming lower default rates than private lenders, but most government loans have been to students at four-year colleges. The private lenders have serviced a higher percentage of students at community and two-year colleges, where defaults are more common regardless of lender.
If the feds are now making and owning all such loans, expect default rates to soar. When the government hires contractors to collect on its loans, it pays them for simply calling the borrower, regardless of the result. Private lenders, on the other hand, make money from a performing loan and have a greater incentive to do careful underwriting and aggressive collection.
The government will start spending these illusory "savings" immediately, and the spending is sure to be more than the imagined savings. The Obama plan also adds a CBO-estimated $46 billion in new spending over 10 years to enlarge Pell grants. Ominously for the federal fisc, starting in 2011 these grants will automatically rise each year by the consumer price index plus 1%. Not that students will actually benefit from this subsidy explosion. Colleges have reliably raised prices to capture every federal dollar ear-marked for education financing. " "
I assuming you're having a pitiful attempt at being a Grammar Nazi? Which would be laughable considering how poorly constructed your posts are at times.
