On government help
President Ronald Reagan loved to repeat one of the world’s most famous untruths: “We’re from the government and we’re here to help you.” I think one of the best examples is when Obama’s administration pirated the student loan business from private interests in 2012, according to The Wall Street Journal, to help pay for Obamacare.
So how is that working out? The Congressional Budget Office now projects a $306.7 billion cost to taxpayers over the next 10 years. In addition, the government spent $800 million in 2010 on administrative costs. The government’s overhead tab this year was $2.9 billion.
The giant $1.5 trillion federal student loan program is in woefully bad shape: Only 40 percent of student loans are what may be called “regular payers.” Try making money on this portfolio. Once again, U.S. taxpayers are taking the hit for the liberal takeover of student loans. So how do we solve this onerous problem? It’s simple, just listen to the Democrat candidates for president: Write off the current student debt.
Obviously, those who have student loans benefit greatly from lenient repayment policies, and guess who else is a major beneficiary? That’s right, the colleges and universities themselves. In order to keep enrollment steady, or perhaps a small increase, student loans are available even to those who shouldn’t be in college and those who have no realistic way of repaying.
Tens of thousands are incurring student loan debt, many of them over $100,000 by graduation. Some earn so little they cannot pay the interest on their loans. Don’t worry, government policy will restrict the amount of your monthly payment and write off the balance if you work for the government or nonprofits.
If you think this is all about conservatives falsely waving a red flag, consider this: A recent Bloomberg News analysis found student loan borrowers collectively are paying down only 1 percent of their balance each year, meaning the existing student loan portfolio wouldn’t be repaid for 100 years.
JERRY B. JACKSON Heber Springs