On Monday morning I posted a piece, “Guess who will pay for student loan forgiveness,” for this blog. It had been on my “to do” list since Hillary Clinton began spouting her plan to write-off those loans to win votes.
I wrote how it was a bad idea when the Obama administration took over student loans in 2010, “and a disaster today.”
Lo and behold, that night I read how “President Obama Obama turned a relatively small, privately run, guaranteed student-loan program into a massive government-run disaster,” in Investor’s Business Daily entitled, “Obama’s $1.2 Trillion Student Loan Program Is Falling Apart.”
How nice it feels to be on point with a respected publication.
IBD reports, “This debt crisis is entirely of President Obama’s making,” reminding us that he signed the law “federalizing the student loan program, claiming that the banks were needless middlemen and that the government could just lend the money directly and save truckloads of money.”
“It never worked out that way,” according to IBD, “Experts say that the Education Department is ill-equipped to identify risks when making loans.” Easy terms and high default rates forced the Congressional Budget Office to recently increase the program’s cost by $7billion, a 30 percent rise. The department now manages a loan portfolio bigger than the entire loan business of JPMorgan Chase.
Ahhh … big government, isn’t it wonderful?
