Massachusetts Election Results Ignored by Obama: Plans to Nationalize Student Loans, Aka the Student Aid and Responsibility Act

by the Left Coast Rebel

Strike two folks, first I brought you the commission to raise taxes and bypass the people, now I am reading about a bill worming it's way through the Senate that would give Obama the power to nationalize (read socialize) the student lending industry. Don't take my word for it, take this from CNS :

(CNSNews.com) – A bill currently before the Senate would empower the Obama administration to nationalize the student lending industry, eliminating the federally subsidized private loans millions of university students rely on to finance their educations.

The Student Aid and Fiscal Responsibility Act – currently being considered by the Senate Health, Education, Labor, and Pensions (HELP) Committee – would eliminate the Federal Family Education Loan (FFEL) program. FFEL loans are federally subsidized and make up approximately 80 percent of the student lending industry.

According to the Department of Education, 14.3 million of the 17.5 million student loans were federally subsidized for the 2009-2010 fiscal year. Under Obama’s plan, the government would consume the entirety of this industry – a total of $103 billion in 2009-2010.In return, the government reimburses lenders if market interest rates rise above the interest rates on the loans – in essence, the government reimburses private lenders if they begin losing money on the loans.

In return, the lenders agree to return any windfall profits made from the loans to the government. In other words, if market interest rates fall below the interest rates of the loans, the lenders pay the government the difference.

This is one of the worst ideas I have heard in a while. We are broke, flat broke! If anything we should be getting the Federal government out of the student loan business. It is garbage like this that elected a GOPer to Ted Kennedy's seat. Note the Orwellian sounding 'Student Aid and Fiscal Responsibility Act'. Who could be against student aid and fiscal responsibility after all?

3 comments:

  1. government should get out of business all together. it makes a poor business manager.

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  2. Fortunately, I'm smart enough to know not to rely on government to pay for my engineering studies so have plans, albight painfully and time comsuming, to do it myself. With this government in control, how much of this financial aid and responsibilty will only go to affirmative action students and how many to those that earned their way in? Somehow the numbers 100% and 0% percent comes to mind. Will the schools cater their education programs and curriculum to the government mandates or how much to actual critical and free thinking? Again the numbers 100% and 0% comes to mind. Seems now that BO has all but lost the battle of health care, so he's going after our education now.

    Anyone wonders why college education has skyrocketed, even in our recession (no, it's not just the budget crisis since they were going way up before then)? They know if a student can't afford it, the government will subidize with financial aid. As more financial aid got poured in, the higher the costs went up as the school EXPECTED the government to cover the difference. This is nothing more than educational welfare and it's making the product, a college education more expensive and now more scare, and now BO wants to nationalized student financial aid. The nationalization of our university (from the states no less) must be next though they already spew their liberal mantras.

    ReplyDelete
  3. Linked to at:
    Another Government Takeover Of Private Business

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    It's Time To ROC 'N' ROLL:
    Restore Our Constitution & Restore Our Lost Liberties

    ReplyDelete

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