Student Loans In America: the Next Big Credit Bubble

PolygamousRanchKid writes "In late 1965, President Lyndon Johnson stood in the modest gymnasium of what had once been the tiny teaching college he attended and announced a program to promote education. Almost a half-century later these modest steps have metastasized into a huge, federally guaranteed student-loan industry. On October 25th the Obama administration added indebted students to the list of banks, car companies, homeowners, solar manufacturers and others that have benefited from a federal handout. In response to students burying their obligations in court during the 1970s, anti-default provisions were imposed to make it almost impossible to shed student loans in bankruptcy. There are increasingly loud calls for reform of the system, with demands that range from a full-fledged bail-out of borrowers to a phased curtailment of government lending. The changes announced this week are designed to ease the pressure on struggling graduates. Borrowers who qualify will get payment relief, not debt relief. The administration says these changes will have no cost to taxpayers."

Comments

Re:Another Government Program Gone Wild

[Archangel Michael]

And gives the Democrats another "entitlement" on which to get elected. "The EVIL Republicans are trying to eat your baby and take away your student loans".

Predictable as anything. And people still fall for it.

Beh...

[Mashiki]

Maybe people will start picking up responsible majors to cover their schooling costs, but hey who knows. I mean how many MA's in womens studies along with various lgtb stuff? Dime a dozen.