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OBAMA WANTS NATIONALIZE SCHOOL LOANS.I bet it will be adjustable rate jumbo loans for all at tax payer expense.Just like the home loans.Gotta keep the future in debt as much as possible in advance.
It makes me nervous thinking about the government handling my student loans. I'd rather rely on a private institution that has to comply with certain laws than our government, which seems to make laws up as it goes.
The government already makes a large number of loans. The rest are simply government-guaranteed and made by private companies, at government-subsidized rates. The companies are paid billions and billions of dollars a year to manage these no-risk loans. It's a massive corporate giveaway that basically takes money out of taxpayers' pockets and throws it down the drain for no reason.
The real problem is that the easy availability of student loans (and low accreditation standards) has encouraged inflation of higher education costs by something like 10% a year over the last decade and a half, with the resultant bloated administrative costs (in public and non-profit schools) or scandalous profits (in institutions like ITT and the University of Phoenix) ultimately being borne by students post-graduation.
Even law students these days have difficulty securing jobs that pay well enough to cover their $1200/month loan bills... Imagine the poor fools in hock for $30k/year from culinary schools and the like.
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