You can read my initial report of this under reported spending scheme HERE
The democrats are continuing to quietly attach another nationalization program to the corpulent national healthcare scheme. This silent scheme would replace private student loan lending institutions in favor of direct government financed (read taxpayer financed) student loans. The Hill reports thousands of jobs would be lost in this pursuit:
But the student loan industry estimates that nearly 35,000 jobs would be lost if the federal government lent directly to students and only let private companies service the loans.
Just what we need are more college graduates unable to find work and saddled with crushing student loan debt. If you believe the cost of higher education is exorbitant, imagine what it will be like when all price controls are removed with government subsidizing student loans. Colleges and Universities will no longer have any incentive to price their product competitively if the government is there to approve student loans that cover whatever tuition they demand.
Dana Perino writing for Fox News makes a salient point regarding government takeover of student loans:
One thing is certain, consumers see the best results when they are empowered to choose which options best suit their needs. Maintaining a diverse array of private student lenders — for-profits and non-profits, local and national — would ensure that a retail market is preserved as a means to promote innovation and customer service excellence. Just as none of us want to be forced into a health insurance policy that pays for things we don’t want or need, it’s also a mistake when a high school senior only has one government-mandated option to finance their college education.
If Congress wants Americans to have health care and student loans that work for them, they should support reforms that *drive down* costs and let families shop around for the products best suit their needs. The principles of “choice and competition” cannot just be meaningless, throw-away lines that the Democrats use when they want to get their way. Republicans and like-minded Democrats should ensure that these principles are maintained in the student loan market in order to preserve jobs in a tough economy and prevent the country from spiraling further into debt.
The Cato Institute takes a closer look at “Inventing a Student Loan Crisis“. A must read for those interested in what is really going on with student loans.
In the end all will be well…Harry Reid believes it is a big day in America..only 36,000 Americans have lost their job today.
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