Posts Tagged ‘student loans’

Obama warns colleges … yeah, right.

January 27, 2012

During the SOTU address Pres. Obama warned colleges and universities that they risk losing federal funding if they do not keep tuition costs down.

Hmmm.

Loyal HomeFilers know that we rail often on the indefensibly high tuitions colleges are charging.

For example, see one of our all time favorite posts:
What do b-school profs and Lady Gaga have in common? 

Many pundits are predicting that high-priced colleges will be the next bubble to burst. Students (or their parents, or their companies) have been paying an increasing amount of money to get a decreasing amount of relevant learning. That’s not a good formula.

Government subsidies, student loans and “full fare” foreign students keep pushing tuitions up to levels required to support lavish facilities, expansive athletic programs, outdated delivery methods (think classrooms vs. online), and light teaching loads for faculty journalists.

Let’s see if Obama follows through on his threat … and see if it has an impact.

I’m betting under on both counts.

Universities are hot beds of liberal thinking.

No way Obama puts them in his cross hairs.

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What if colleges owned college loans?

December 12, 2011

College degrees are costing more and no longer insure a rich & prosperous life. 

The cost is going up largely due to the availability of of student loan money.

A recommendation from the Washington Examiner

Student loans, if they are to continue, should be made dischargeable in bankruptcy after five years — but with the school that received the money on the hook for all or part of the unpaid balance.
 
Up until now, the loan guarantees have meant that colleges, like the writers of subprime mortgages a few years ago, got their money up front, with any problems in payment falling on someone else.
 
Make defaults expensive to colleges, and they’ll become much more careful about how much they lend and what kinds of programs they offer.

The article also reps for non-college education.

As the Wall Street Journal has noted, skilled trades are doing quite well. For the past several decades,

America’s enthusiasm for college has led to a lack of enthusiasm for vocational education.

We need people who can make things, and it’s harder to outsource a plumbing or welding job to somebody in Bangalore.
 
Of course, the thing about skilled trades is that they require skill.

Even with training, not everyone makes a good welder or machinist.

Hmmm.

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Prediction: Obama’s midnight pardons will rock the world.

October 27, 2011

On his current campaign swing, President Obama is throwing around tax payer money to rebuild his base.

Earlier this week it was the Federal refinancing of underwater home loans.  Taxpayers will own any defaults.

Yesterday it was the announcement of an executive order to restructure, cap, and eventually forgive student loans after 20 years of payments.

That one troubles me.

Even CNN acknowledges:

The president’s focus on college loan assistance could also help him with younger voters — generally a core Democratic constituency. In 2008, Obama carried two-thirds of all voters ages 18 to 24, according to national exit polls.

Did you know that a provision of the ObamaCare law was to nationalize student loan programs?  Amazing what you can sneak into a 2,000 page unread law.

Now, the Executive branch (i.e. the Obama administration) has wide, unprecedented latitude to grant, structure and forgive student loans.

Presidents have often issued pardons and waivers during their last hours in office.  Think Bill Clinton pardoning uber-tax evader Marc Rich.

I predict that if Obama gets beat in 2012 – a 50 / 50 bet as things now stand – he will issue the mother of all pardons: forgiveness of all Federally held student loans and maybe, while he’s at it, the forgiveness of all Federally held home loans.

Far-fetched?

I don’t think so, and now, I’m on the record.

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