Is there a bigger phony-baloney than President Obama?No there isn’t. Even for Washington DC, his “down is up” politicking and never ending campaigns stand out as pure style over substance.
Today we see the president standing on the steps of the Capital with, I imagine, college students behind him in “eyes in the headlights” support of what gobbledygook he’s spouting and thus proving beyond doubt that a college education isn’t worth the money these Indoctrinaires are paying these days.Was it not Obama’s administration that had nationalized the Student Loan Program back in 2010? Is it not this same program that will lend a student ANY AMOUNT of money they may need for their education regardless of their means or ability to pay it back? Has this not lead to a tremendous $ 1 Trillion plus student loan debt of which nobody in government is speaking to? Now he’s out there trying to keep the spigot open so more cheap money will hemorrhage out of the taxpayer guaranteed program.
No, Mr. Obama didn’t invent the student loan program, that was Socialist president Lyndon Baines Johnson who signed it into law back in 1965 but in true Obama fashion he streamlined the way for government to take over the whole program and become the sole lender. Try as I might, I can’t seem to find the article in the US Constitution that allows the Federal Government to administer a student loan program. Just why IS the government in the student loan business? Perhaps it’s to provide an almost unlimited supply of funds to their most ardent supporters, the Public University System.Under the government loan program, there is no incentive for an institution of higher learning to scale back its operations. The local college here in Obscurity, MA is building new athletic fields, parking lots and dorms. Other colleges I see are also expanding and thereby removing more and more property from the local property tax base since they are non-profit organizations and so the property they acquire comes off of the tax rolls. The college professors are not only making crazy money for their “teaching” but these schools also offer “special” teaching positions to local politicians. It’s big money for not a lot of work. This all costs alotabucks! Where does it come from? The students tuition and fees, of course.
The Student Loan Program will let the student borrow any amount the University will charge. After all, you want your kid to have a college education, don't you? There is no point where they will not receive the money. This is why we see bank tellers with $60,000.00 in college debt and doctors with $150,000.00 in arrears and anything in between. How can a Liberal Arts major be in debt for $80,000.00? They will NEVER make that back. Plus, these people’s future borrowing power is kaput until they can whittle these amounts down. I know people ten years out of college who are still paying.But also add to this situation the tax increases under the present regime including the escalating costs of ObamaCare. These increased burdens on consumers and businesses are contributing to the slowest economic growth the nation has ever seen including the Great Depression. We are in our 6th year as of this writing after the 2007 credit crash and the nation has yet to regain half the wealth it lost at that time and a fraction of the jobs. We have more people on food stamps than ever before, more unemployed and under employed than ever and the highest tax burden on the middle class that has ever been. As we stagger along this pathway of under productivity, it’s the nation’s youth that are facing limited job prospects and looming repayment responsibilities.
Only the very rich and the very poor can afford to go to college these days. The poor go for free and the rich can just pay. It's the middle class that goes into massive debt and pays away their saving to get their kid through college. Not rich enough to afford it outright and not poor enough to qualify for government give-a-way grants.
So at what point will the costs become too much to where students can no longer afford to pay and the college system will be forced to contract? Well, I’d say if the cost of borrowing the money went up…oh wait, now I get it!So to see President Obama standing on the steps of the Capital building proclaiming yet again that it is Congress’ fault things aren't happening and that they “shouldn't aughta” raise the interest rates is a laughable event.
If anybody should be to blame for the mess today’s college graduates are facing, it’s him.