Student-loan debt: The next bailout?

posted at 2:01 pm on July 26, 2012 by Ed Morrissey

Haven’t we seen this one coming for a while?  Back in November at the height of the Occupy movement, when activists demanded a bailout on student loans, Reason TV offered this helpful reminder of all the reasons a bailout would do more damage than it would undo:

Nevertheless, the newly-formed Consumer Financial Protection Board has proposed wiping out student-loan debt — but only those debts from private lenders:

A federal agency is asking Congress to consider letting people wipe out some of their student debt by filing for bankruptcy protection. Consumer advocates, however, say the move will do little to help the vast majority of families struggling with college loans.

Richard Cordray, director of the Consumer Financial Protection Bureau, suggested the change to the bankruptcy rules last week in conjunction with a report criticizing private lenders. A 2005 law preventing borrowers from discharging private student loan debt in bankruptcy failed to prompt lenders to lower rates as promised, he said during a media call.

But even if Congress changes the private-loan policy, federal loans – which account for about 85% of the more than $1 trillion in outstanding student debt – would still not be dischargeable through bankruptcy, says Mark Kantrowitz, the publisher of FinAid.org, a student loan tracker.

Recall that one of the criticisms Republicans made about the CFPB when first proposed was that it would disconnect those financial-watchdog efforts from the regulatory efforts of lenders — which would incentivize the panel to produce industry-damaging policies.  When the CFPB’s student-loan ombudsman Rohit Chopra testified before a Senate panel to push this effort, Sen. Bob Corker offered a bitter “I told you so“:

Sen. Bob Corker, R-Tenn., the ranking member of the subcommittee, blasted the proposal, saying that seeking bankruptcy protection from student loan debt is “one of the most damaging things that a consumer can possibly do,” and would create a hardship for private lenders.

Moreover, the bankruptcy proposal has rekindled conservatives’ strong opposition and resentment towards the CFPB, which was created as part of the Dodd-Frank financial overhaul legislation and initially headed by Harvard professor Elizabeth Warren who left to run for the Senate in Massachusetts.

“I just find it fascinating that one of the first things that you would do as a consumer protection agency” is propose allowing private borrowers to seek bankruptcy protection, Corker told Rohit Chopra, the financial protection bureau’s student loan ombudsman, who also appeared before the subcommittee. “I think you can see now why so many of us thought it was a really terrible idea to have a consumer agency separate from the financial regulators.”

In my column today for The Fiscal Times, I argue that the problem is twofold — the irrational higher-education bubble and the lack of sound economic policy to drive job growth.  In both cases, a bailout would make matters worse:

According to the New York Federal Reserve, student-loan debt for those under 30 has risen 56% since 2005 alone, thanks to The Higher Education Bubble, as law professor and political commentator Glenn Harlan Reynolds titled his recent book on the subject.  Reynolds warns that this bubble is ready to pop.  “Bubbles form when too many people expect values to go up forever,” Reynolds writes in his introduction.  “Bubbles burst when there are no longer enough excessively optimistic and ignorant folks to fuel them.  And there are signs that this is beginning to happen already where education is concerned.”  What would be the scope of the damage done by a bubble burst in higher-ed lending?  The aggregate debt from private student loans stands at $150 billion, with 2.9 million borrowers, averaging $51,724 per student.

Instead of curbing the artificial demand caused by the government intervention in lending markets, the Obama administration wants to stiff the very lenders that relied on the 1977 law forbidding bankruptcy on student loans as well as the government subsidies that caused them to conduct that high-risk lending in the first place.  That could wipe out a large amount of capital on the books at the moment, further destabilizing private lending markets overall and possibly risking bank health in the bargain.  Not every one of those borrowers would declare bankruptcy, but the temptation that this regulatory change presents would probably have a significant percentage ready to do so. …

Instead of handing out free passes to renege on debt, the Wall Street Journal wondered why the Obama administration doesn’t address the real acute problem for these borrowers – an economy that doesn’t produce jobs.  “Wouldn’t it be easier merely to encourage job creation,” the editorial board asked, “rather than try to anticipate and make taxpayers pay for every consequence of joblessness?”  Yes, it would – and the arbitrary destruction of billions in student-loan debt capital would make it even more difficult for others to get the loans they need to open new businesses and expand existing ones.

The CNBC report adds that the reason that the Obama administration isn’t pushing a complete default on student debt — 85% of which is now held by the federal government — is because it would shift the costs to taxpayers.  That will happen with a private-debt default, too, since most of that debt was issued with federal guarantees.  Even if that wasn’t the case, taxpayers and consumers would pay the costs in the price of credit and a lack of capital for more job creation, as well as the damage that the further instability of failed securities based on student loans would bring.

But hey — it might buy Obama a few more votes from younger voters.  If so … his plan will have worked.


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“You didn’t borrow that!” ?

aquaviva on July 26, 2012 at 2:05 PM

You mean I have to pay it back?

- Typical, Snot-nosed, Student, Fluker

OhEssYouCowboys on July 26, 2012 at 2:05 PM

“You didn’t borrow that!” ?

aquaviva on July 26, 2012 at 2:05 PM

Dang straight. “You didn’t default that loan. Somewhere in your life there was a teacher….”

apostic on July 26, 2012 at 2:07 PM

Yeah, this will end perfectly.

Washington Fancy on July 26, 2012 at 2:07 PM

Oh boy do I ever feel like a chump. I worked my way through college but still had to take out loans. I graduated with about $23k of loan debt. After college I sacrificed a lot of things I wanted so that I could pay my loans back as quickly as possible. I made more than the minimum monthly payments and then toward the end I wrote a check for the last couple thousand – took the money out of my meager savings account – just to be done with it. That was about a year ago.

Can I have the government retroactively bail out my loan and get back some of the money I foolishly paid back too quickly?

The government is teaching us a valuable lesson. To be responsible is to be a chump. To hold out for government help is in your financial best interest.

Ugh.

dczombie on July 26, 2012 at 2:08 PM

Nevertheless, the newly-formed Consumer Financial Protection Board has proposed wiping out student-loan debt — but only those debts from private lenders:

You gotta hand it to Obozo though. He is centralizing government more than anyone would have thought possible 10 years ago.

KMC1 on July 26, 2012 at 2:08 PM

Nevertheless, the newly-formed Consumer Financial Protection Board has proposed wiping out student-loan debt — but only those debts from private lenders:

…the private sector is doing fine!

KOOLAID2 on July 26, 2012 at 2:10 PM

aww, sookie sookie now. no more paying my student loans every month? sah-weet!

bloghooligan on July 26, 2012 at 2:10 PM

Do you remember that woman at a 2008 Obama campaign rally who said on video with tears of joy that she never will have to worry about paying her bills again after our dear leader is elected? Well, she was right.

maubman on July 26, 2012 at 2:12 PM

I sure hope so. I don’t want to have to pay back the $150,000 I spent on my degree in Native American Lesbian Studies. If the government bails me out, then all that pooping on police cars will have been worth it.

The Rogue Tomato on July 26, 2012 at 2:12 PM

But hey — it might buy Obama a few more votes from younger voters. If so … his plan will have worked.

heh. it pays to define the terms.

ted c on July 26, 2012 at 2:12 PM

Whatever it takes to get these people to vote for bho, bho/team will do it?
L

letget on July 26, 2012 at 2:14 PM

Sure, discharge the debt (not that I think it’s a good idea).

But at the minimum, the student’s degree and college credits should be rescinded, only to be reinstated when the student pays off the debt.

SPCOlympics on July 26, 2012 at 2:15 PM

And this racist program, and a fund for studies of flunked in high school Latinos, so they can still prep for college…and so your president wastes your hard earned tax dollars for votes, only for his own power.

Send him packing, mocked into oblivion, for he will ruin you and your families.

Schadenfreude on July 26, 2012 at 2:15 PM

…the private sector is doing fine!

KOOLAID2 on July 26, 2012 at 2:10 PM

no worries dude, that private sector will just monkey around with the LIBOR rates it will be fine.

nathor on July 26, 2012 at 2:17 PM

I sure hope so. I don’t want to have to pay back the $150,000 I spent on my degree in Native American Lesbian Studies. If the government bails me out, then all that pooping on police cars will have been worth it.

The Rogue Tomato on July 26, 2012 at 2:12 PM

What a perfect post. But, allow me to add just a couple of things:

… my Harvard, undergraduate degree in Native American Lesbian Studies, which allowed me to be accepted to, and attend, Harvard Law School.

OhEssYouCowboys on July 26, 2012 at 2:19 PM

So the administration’s stance is that its wrong to be indebted to the private lender, forgo buying a home because you’re paying off a student loan, but it WILL be paid off on an average of 10 years or so…

BUT its fine to be indebted to the federal government… because the FEDS will let you either work for the federal government in public service for 10 years, like teaching in inner city schools, and forgive the balance of the loan…. or make smaller payments and bleed out a percentage of your income for 25 years… at which time they will ‘forgive’ the balance of that loan that may remain unpaid.

Forgive me… but it sounds to me like an excellent scheme to make educated people indentured servants of the federal government, and if they choose not to work for public service for 10 years, which often means low pay and putting their own family life on hold… …paying throughout their working lives.

thatsafactjack on July 26, 2012 at 2:19 PM

Government solutions seem to always add to the problem Government solutions create in the first place. Here’s a novel idea, do not borrow that which you do not wish to pay back. Work is a good way to pay off debt, welching is not, character is important. Laziness is not a virtue.

Bmore on July 26, 2012 at 2:19 PM

But at the minimum, the student’s degree and college credits should be rescinded, only to be reinstated when the student pays off the debt.

SPCOlympics on July 26, 2012 at 2:15 PM
that is a good idea

nathor on July 26, 2012 at 2:21 PM

Isn’t there already some kind of scam going whereby you can get your student loans forgiven if you make the sacrifice of entering the federal government workforce with their already excessive salaries and benefits?

slickwillie2001 on July 26, 2012 at 2:22 PM

Hey – I didn’t take out that mortgage or car loan or build that credit card balance on my own – somebody else did it for me – so I want someone to pay all of it off for me.

dentarthurdent on July 26, 2012 at 2:22 PM

you didn’t build that, the govt let you out of your student debt

he can pander and wipe out my student debt, but my vote cannot be purchased by parasites

burserker on July 26, 2012 at 2:23 PM

no worries dude, that private sector will just monkey around with the LIBOR rates it will be fine.

nathor on July 26, 2012 at 2:17 PM

Ever heard the term “one trick pony”?

dentarthurdent on July 26, 2012 at 2:24 PM

Reynolds warns that this bubble is ready to pop. “Bubbles form when too many people expect values to go up forever,” Reynolds writes in his introduction. “Bubbles burst when there are no longer enough excessively optimistic and ignorant folks to fuel them. And there are signs that this is beginning to happen already where education is concerned.”

I rather liked one preemptive solution the Professor recommended: Make the education institutions that receives the funds co-signers on the loans. Putting a college on the hook for a loan might encourage it to teach marketable skills….

apostic on July 26, 2012 at 2:25 PM

Yes and some of it called it months ago.

I’ll bet you 5000 rounds of that stuff you put into your 1000 round clip and then attach to your assaulted heavy weaponized machine cannon.

CorporatePiggy on July 26, 2012 at 2:25 PM

Someone take the bet – I cleared out Walmart and Cabellas yesterday.

CorporatePiggy on July 26, 2012 at 2:26 PM

A better Groucho song for Obama (from Duck Soup):

The last man nearly ruined this place
He didn’t know what to do with it.
If you think this country’s bad off now
Just wait ’till I get through with it.

The treasury is low on dough;
The last man went and flew with it.
If you think we’re short of money now
Just wait ’till I get through with it.

The country’s taxes must be fixed -
And I know what to do with it,
If you think you’re paying too much now,
Just wait ’till I get through with it.

I will not stand for anything
That’s crooked or unfair;
I’m strictly on the up and up,
So everyone beware.
If anyone’s caught taking graft
And I don’t get my share,
We’ll stand ‘em up against the wall -
And Pop goes the Weasel!

The Rogue Tomato on July 26, 2012 at 2:27 PM

I paid for my degree(s).

I assisted my kids to the extent possible. They paid the rest.

Why should I eat the cost of anyone else’s degree or mere attendance at school?

BTW, one of the most onerous myths out there is the constant railing that “everybody” should go to college.

No.

Not everyone should go to college.

Too many did, and look at the plethora of young adults out there who cannot get a job flipping burgers. That degree in transgender literature is worthless. And, if you’ve been in a college classroom in the past decade, you will understand that too many “students” would be better off applying their talents and interests elsewhere….or were so dumb that the university had to set up a fifth year program so instead of freshman year, the kids have to re-take course and learn simple concepts they by law should have learned in high school.

Lastly, if we let these adults off the hook on a contractual agreement…what is the next step? Let them off the hook when they lease a car because, gee, they cannot afford the payments?

As an adult…over 18 these days…you sign a contract you fulfill that contract. That is the way the real world operates best.

coldwarrior on July 26, 2012 at 2:28 PM

Paying off your student loan debt would be a bourgeoisie act. Haven’t you learned anything in college?

- Typical College Professor

OhEssYouCowboys on July 26, 2012 at 2:28 PM

Ever heard the term “one trick pony”?

dentarthurdent on July 26, 2012 at 2:24 PM

could not resist… that poor private sector…

nathor on July 26, 2012 at 2:28 PM

… my Harvard, undergraduate degree in Native American Lesbian Studies, which allowed me to be accepted to, and attend, Harvard Law School.

OhEssYouCowboys on July 26, 2012 at 2:19 PM

Priceless addition, thank you.

The Rogue Tomato on July 26, 2012 at 2:28 PM

OhEssYouCowboys on July 26, 2012 at 2:19 PM

Why, bless your little heart. :-)

coldwarrior on July 26, 2012 at 2:30 PM

The CNBC report adds that the reason that the Obama administration isn’t pushing a complete default on student debt — 85% of which is now held by the federal government — is because it would shift the costs to taxpayers.

Oh, he’ll do that….after he’s reelected and has more “flexibility”. Why else would they have snuck a federal takeover of student loans into Obamacare if not to have the power to forgive that debt?

Doughboy on July 26, 2012 at 2:31 PM

Moving ever so closer to full marxism.

bgibbs1000 on July 26, 2012 at 2:33 PM

My kids have student loans, and I wouldn’t want them to file for bankruptcy to get rid of them. Keeping the interest rates low would help. If you can buy a house at 3.5% why not make the interest on these loans the same.

In the future these lenders would be wise to have an interview with the students and declare the policy that loans would only be given for degrees that would have value in the jobs market.

Rose on July 26, 2012 at 2:34 PM

The CNBC report adds that the reason that the Obama administration isn’t pushing a complete default on student debt — 85% of which is now held by the federal government — is because it would shift the costs to taxpayers.

On the one hand, he doesn’t care. But on the other hand, forgiving all of that means no interests payments to the IRS, and we all know that the IRS wants the money. So that’s why he won’t do it.

nobar on July 26, 2012 at 2:35 PM

You don’t need to bail student loans out, just let people declare bankruptcy after 5 years or so like they used to be able to do in the past.

If you are crushed with huge student loan debt and you can’t get a job, then yes, absolutely, bankruptcy should be an option. Right now it is not. That is not right.

Contrast this with homeowners who could simply walk away from their homes and owe nothing despite being hundreds of thousands of dollars underwater. They didn’t even need to declare bankruptcy to get out from under that debt!

kaltes on July 26, 2012 at 2:35 PM

I cleared out Walmart and Cabellas yesterday.

CorporatePiggy on July 26, 2012 at 2:26 PM

Love this post.

OhEssYouCowboys on July 26, 2012 at 2:35 PM

no worries dude, that private sector will just monkey around with the LIBOR rates it will be fine.

nathor on July 26, 2012 at 2:17 PM

Yeah, how dare they try to manipulate interest rates, that’s what we have Helicopter Ben for.

agmartin on July 26, 2012 at 2:35 PM

no worries dude, that private sector will just monkey around with the LIBOR rates it will be fine.

nathor on July 26, 2012 at 2:17 PM

..yes…I see the SOS you’re saying…and your not responding to the Flora Duh post or link.

KOOLAID2 on July 26, 2012 at 2:41 PM

You don’t need to bail student loans out, just let people declare bankruptcy after 5 years or so like they used to be able to do in the past.

If you are crushed with huge student loan debt and you can’t get a job, then yes, absolutely, bankruptcy should be an option. Right now it is not. That is not right.

Contrast this with homeowners who could simply walk away from their homes and owe nothing despite being hundreds of thousands of dollars underwater. They didn’t even need to declare bankruptcy to get out from under that debt!

kaltes on July 26, 2012 at 2:35 PM

The difference here is that a home is a transferrable asset. If a homeowner walks away from the mortgage, the bank gets to reposess and then resell the home so they may lose a little profit on the extra transaction costs but they’re not just completely left in the lurch.

If someone walks away from their student loan debt, the lender can’t just reposess the diploma and sell it to someone else. Unless we want to let them do that, which is another conversation altogether.

dczombie on July 26, 2012 at 2:43 PM

Useful idiots are good. Useful idiots who are heavily indebted to you (or massively grateful for forgiving their debt) are even better.

Marcola on July 26, 2012 at 2:43 PM

Rush called it. He said in the spring that Obama would go this route.

NoFanofLibs on July 26, 2012 at 2:43 PM

We dont bail out main street. We only bail out wall street. Duh!

Politricks on July 26, 2012 at 2:58 PM

Progressives want to allow everything to be wiped out in bankruptcy. Dick Durbin has long fought to allow bankruptcy judges to “cram down” mortgages that exceed the current value of the property. Never mind how much mortgage rates would skyrocket if lenders had to factor in the risk that every loan could be crammed down simply by the borrower declaring bankruptcy.

The instant that student loans become dischargeable, everyone who has one will declare bankrpucty. They would be foolish not to. And no private lender would ever make a student loan again.

rockmom on July 26, 2012 at 2:59 PM

… my Harvard, undergraduate degree in Native American Lesbian Studies, which allowed me to be accepted to, and attend, Harvard Law School.

OhEssYouCowboys on July 26, 2012 at 2:19 PM

Priceless addition, thank you.

The Rogue Tomato on July 26, 2012 at 2:28 PM

Late one night we learned one of our famous trolls has a PhD in Post-Dada Lesbian Haiku.

slickwillie2001 on July 26, 2012 at 2:59 PM

Marc Lamont Hill, the regular guest on Ted Baxter’s show, has a PdD in hip-hop music.

Just another sign of Fox News’s long downhill slide.

slickwillie2001 on July 26, 2012 at 3:02 PM

Sweet now instead of paying my student loans, I can finally get that Barrett 50 cal, just for Zombie eradication of course.

LincolntheHun on July 26, 2012 at 3:04 PM

Late one night we learned one of our famous trolls has a PhD in Post-Dada Lesbian Haiku.

slickwillie2001 on July 26, 2012 at 2:59 PM

Thanks for the laugh. That one is a Supreme Court nominee, just waiting to happen, for sure.

OhEssYouCowboys on July 26, 2012 at 3:04 PM

My kids have student loans, and I wouldn’t want them to file for bankruptcy to get rid of them. Keeping the interest rates low would help. If you can buy a house at 3.5% why not make the interest on these loans the same.

In the future these lenders would be wise to have an interview with the students and declare the policy that loans would only be given for degrees that would have value in the jobs market.

Rose on July 26, 2012 at 2:34 PM

That’s the best policy argument for allowing student loans to be dischargeable. Nobody would make a loan to study art history or Queer Studies, because those loans are almost guaranteed to default and the borrower end up bankrupt. Students would have to get a little more serious about pursuing a degree that would enable them to actually repay the loan, or go to a less expensiev college that they can afford. This in turn would force colleges to lower tuition to attract those students who would no longer be able to get loans.

But that will not be a seamless process, in fact it would be a pretty ugly transition.

rockmom on July 26, 2012 at 3:05 PM

Most of them went to school to study utterly insignificant arts and humanities majors, took tax payers money and bank loans to pay for their insignificant studies, could not find work because their filed of studies are too meaningless to be used in the real world, but now these stupid losers are demanding that we the tax payers and banks forgive all their debts.

Go f*** yourself losers…

mnjg on July 26, 2012 at 3:06 PM

Sure, discharge the debt (not that I think it’s a good idea).

But at the minimum, the student’s degree and college credits should be rescinded, only to be reinstated when the student pays off the debt.

SPCOlympics on July 26, 2012 at 2:15 PM

Might look like a good idea on the surface, but once your degree in Mesopotamian Pottery (minor in Interpretive Dance)has been rescinded, you’ll still be as unemployable as you were when you had the degree, so why bother paying off the debt?

Trafalgar on July 26, 2012 at 3:08 PM

Do you remember that woman at a 2008 Obama campaign rally who said on video with tears of joy that she never will have to worry about paying her bills again after our dear leader is elected? Well, she was right.

maubman on July 26, 2012 at 2:12 PM

No she was not, she probably was a third generation welfare parasite who never paid a bill before… Just remember this simple fact, it is always the dumb democrat voters who got hit the worst in any economic turndown for the simple reason “they are f***ing dumb and laszy”…

mnjg on July 26, 2012 at 3:13 PM

laszy= lazy

mnjg on July 26, 2012 at 3:13 PM

That’s the best policy argument for allowing student loans to be dischargeable. Nobody would make a loan to study art history or Queer Studies, because those loans are almost guaranteed to default and the borrower end up bankrupt. Students would have to get a little more serious about pursuing a degree that would enable them to actually repay the loan, or go to a less expensiev college that they can afford. This in turn would force colleges to lower tuition to attract those students who would no longer be able to get loans.

But that will not be a seamless process, in fact it would be a pretty ugly transition.

rockmom on July 26, 2012 at 3:05 PM

Agree 100%… No student loan should be given to any student who wants to major in a stupid degree that has no value in the real world and that is the majority of majors in arts and humanities. They want these meaningless majors then their parents should pay for them if they are that stupid to waste their money.

mnjg on July 26, 2012 at 3:16 PM

..yes…I see the SOS you’re saying…and your not responding to the Flora Duh post or link.

KOOLAID2 on July 26, 2012 at 2:41 PM

I dont see that post!
?!?

nathor on July 26, 2012 at 3:17 PM

Yeah, how dare they try to manipulate interest rates, that’s what we have Helicopter Ben for.

agmartin on July 26, 2012 at 2:35 PM

are you being apologetic of corrupt bankers?

nathor on July 26, 2012 at 3:20 PM

Allowing bankruptcy for student loan debts makes those that have never gone bear the burden of those that did.

Charlemagne on July 26, 2012 at 3:50 PM

That car Mom and Dad gave you, new was probably around thirty thousand dollars and if you worked your way through college you already know what is real. For those that took the student loan I welcome you to reality of debt when you barrow to get it now reality. No booze, tats, cigs, latest fad clothing, entertainment including movies, snacks and you will be well on your way to paying off your loan. Get married or pregnant and you’ll looking at retirement before the loan is payed off.

mixplix on July 26, 2012 at 4:09 PM

I have mixed feelings about this. I’m currently paying back my federal student loans. The federal loans have a variety of payment plans and will allow you to suspend payments for months or even years if you cannot make payments. So although federal student loans are not dischargeable in bankruptcy they are more flexible then other consumer loans. The problem is private student loans that offer none of the payment flexibility of federal student loans combined with none of the consumer protections (eg bankruptcy, statue of limitations).I think one solution could be to allow the same flexible payments for private loans as for federal loans and bankruptcy of some private student loans if there has been an effort to make payments for say 5-7 years. I’ve read of cases where there are people who have six figure loan debts from law school who cannot find a job.These are cases in which people are saddle with hundreds of thousands of dollars of non-dischargeable debt that they can never get rid of.I read of one case in which a law school grads 66K in private student loans has grown to over 300K in 15 years thanks to an over 8% interest rate.He will never pay that off. This is a case in which I think a person should be able to make a fresh start with bankruptcy.

Hera on July 26, 2012 at 4:09 PM

If the Federal government is to allow bankruptcy for failure to pay student loans, it should apply across the board, to both private and Federal student loans, with the same criteria for both. If it only applies to loans made by private banks, those banks will be bilked of their money en masse, and will refuse to make student loans in the future, giving the Government a monopoly on student loans. This would enable the Government to raise interest rates on student loans without competition, effectively making college students pay tribute to the State, and forcing all taxpayers to pay college tuition, even if their children do not attend college.

Steve Z on July 26, 2012 at 4:21 PM

If the Federal government is to allow bankruptcy for failure to pay student loans, it should apply across the board, to both private and Federal student loans, with the same criteria for both. If it only applies to loans made by private banks, those banks will be bilked of their money en masse, and will refuse to make student loans in the future, giving the Government a monopoly on student loans.

Steve Z on July 26, 2012 at 4:21 PM

That’s exactly the point of all this. This is what they want.

dczombie on July 26, 2012 at 4:44 PM

And how many of these loans are from people who should never be going to college paying a diploma mill for a worthless degree just because they have people like Obama screaming at them that EVERYONE needs to go to college?

nextgen_repub on July 26, 2012 at 4:47 PM

I can’t even think about the possibility that the government might offer (or force) some sort of bailout for student loans without my head exploding. I’ve got three kids whose college educations I have paid for myself. I’ve taken out loans out the wazoo and pulled money out of my 401(k) to pay off the loans. In short, I’m doing everything I can to meet my obligations because I’m the one who made them and I’m the one who knew what I was getting into before I got there. If I can’t meet the obligations I’ve made for myself then my kids will step in. It’s no one else’s responsibility, and I’ll meet my obligations come hell or high water. The very idea that the government (read Democrats) feel that the rest of the American taxpayers have any responsibility to bail me or anyone else out for choices they have made is insane!

I’ll tell you what, Mr. Obama… just get your freakin’ tentacles off of the American economy, let businesses innovate, take risks, make as much money as they can make and then get the heck out of the way. That’ll be the best thing you could possibly do for me and for those students who are carrying loads of debt and have no jobs to pay it off.

Good grief! When did we put the nuts in charge of the asylum?!

Harrell on July 26, 2012 at 5:40 PM

I didn’t ask for the government to take over my private loan that used to be from private bank. I sure as hell didn’t ask to be bailed out.

Thanks

RDE2010 on July 26, 2012 at 6:05 PM

Only if the private lenders can claw back the money from the outrageously overpriced institutions of “higher learning” with their usurious fees. Give it back NYU-you didn’t earn it. The indoctrination you’re providing is not worth $50K per year.

talkingpoints on July 26, 2012 at 6:29 PM

Can we get these kids a job, PLEASE President Obama?????

Fleuries on July 26, 2012 at 7:31 PM

The student loans that belong to the government are operating at a really high profit to the government.

Fleuries on July 26, 2012 at 7:33 PM

I sure hope so. I don’t want to have to pay back the $150,000 I spent on my degree in Native American Lesbian Studies. If the government bails me out, then all that pooping on police cars will have been worth it.

The Rogue Tomato on July 26, 2012 at 2:12 PM

Should have gone for Transgendered Pacific Islander Feminist Vampire with barbed wire tattoos Studies. I got a deal at $125,000.00. They say next week I’ll be off the Drive-Up window and into Parking Lot maintenance.

Hell yeah, bay-bee! Movin’ on up.

No word on the CEO position I applied for. I think I’m overqualified.

98ZJUSMC on July 26, 2012 at 7:50 PM

Student-loan debt: The next bailout

The real October Surprise

socalcon on July 26, 2012 at 8:36 PM