What did you think would happen following Obama’s Hugo Chavez-style nationalization of the student loan industry if not this:
America’s now-nationalized student loan industry just reached a value of $1 trillion, according to Citigroup, growing at a 20 percent-per-year pace. Since President Obama nationalized the industry (a tacked-on provision of the Obamacare bill), tuition has gone up 25 percent and the three-year default rate is at a record 13.4 percent. …
With many young people unable to pay their loans (average graduating debt is about $29,000), Citigroup and others are speculating that this industry might be ripe for a bailout.
To pay off all the current defaults, Citigroup says it would cost taxpayers $74 billion. However, this number doesn’t include those who will default in the coming years, and, when the government rewards the defaulters, it will encourage more borrowers not to pay their debts.
And liberals in Congress have proposed forgiving all student loans via “The Student Loan Forgiveness Act 2012,” costing taxpayers $1 trillion.
Then instead of paying off their loans, they can try paying off the national debt. Just kidding. By reelecting Obama, we officially established that America has no intention of paying off the national debt. We’re just going to keep spending until the house of maxed out credit cards collapses. Then those who survive the inevitable violence can root through the rubble for rotting garbage to subsist on entirely debt free.
On tips from Henry B and Artfldgr.