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Aug 31 2015

Obama’s Nationalized Student Loan Industry Is Monumental Failure

As part of the ObamaCare fiasco, Obama ham-fistedly nationalized the student loan industry in a move that was supposed to help finance subsidized health insurance. Let’s check in on how it has worked out:

In less than five years, President Obama turned a relatively small, privately run, guaranteed student-loan program into a massive government-run disaster. What’s his answer? More government, naturally. …

Delinquency rates on the feds’ $1.2 trillion of student loans are sky high — worse than mortgage loans during the housing crisis.

The New York Fed reports that 11.5% of student loan debt was more than three months past due in Q2 of this year, which was up from Q1. By comparison, the 90-day delinquency rate on credit card debt is just 8.4%. The St. Louis Fed says that 27.3% of student loans that are currently being repaid are at least a month behind.

Now comes word from the Department of Education that 6.9 million people haven’t made a student loan payment in more than 360 days, which is up 6% from the year before.

Here’s why people are no longer paying back their loans, now that Big Government is running things:

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 recently to increase the program’s cost by 7 billion — a 30% jump.

This is getting to be a serious problem…

And the risk of another financial crisis looms as the amount of direct federal student loan debt has climbed more than 600%. The Department of Education now manages a loan portfolio bigger than the entire loan business of JPMorgan Chase.

But rather than rein in this program, Obama is instead targeting private loan servicing companies that contract with the government to collect the loans for what he calls overly aggressive tactics. This is typical of liberals. If a government program isn’t working, the answer is always more government, never less.

That’s because you never want to let a crisis go to waste as an opportunity to create another crisis that can be used as an excuse to create another crisis after that, each one more expensive than the one before, on and on like the reflections in two facing mirrors.

Socialism does not work. But we already knew that. The question is how we prevent tyrants from imposing it.

On a tip from Lauren.




37 Responses to “Obama’s Nationalized Student Loan Industry Is Monumental Failure”

  1. artfuldgr says:

    and to make it worse, they blame men for earning more after women go to school to get feminist studies in fourth century basket creation in the west indies… which will get them what offers in the employment area? who told them ANY degree gets you a job? wtf?

    meanwhile, businesses are abusing the H1B visa program to hire foreign workers who didnt take racial studies in the cro magnon era…

  2. Artfuldgr says:

    and to make it worse, they blame men for earning more after women go to school to get feminist studies in fourth century basket creation in the west indies… which will get them what offers in the employment area? who told them ANY degree gets you a job? wtf?

    meanwhile, businesses are abusing the H1B visa program to hire foreign workers who didnt take racial studies in the cro magnon era…

  3. Musicmaven says:

    The rates are no bargain, and they hand out $30,000 loans with little more than a signature. What a scam and who will really pay in the long run….just look in the mirror if you accutually pay taxes.

  4. Musicmaven says:

    The rates are no bargain, and they hand out $30,000 loans with little more than a signature. What a scam and who will really pay in the long run….just look in the mirror if you accutually pay taxes.

  5. Eddie_Valiant says:

    Hang on to your butts folks. When the communist regime leaves office, and they will, either vertically or horizontally, the money printing scheme will come to an end.

    If you think the economy has been effed up since 2009, wait until the shock of free money coming to an end hits the gimme crowd.

  6. Eddie_Valiant says:

    Hang on to your butts folks. When the communist regime leaves office, and they will, either vertically or horizontally, the money printing scheme will come to an end.

    If you think the economy has been effed up since 2009, wait until the shock of free money coming to an end hits the gimme crowd.

  7. Silence Dogood says:

    EVERYTHING this man has touched has become a monumental failure. He’s a class A #EpicFAIL

  8. Silence Dogood says:

    EVERYTHING this man has touched has become a monumental failure. He’s a class A #EpicFAIL

  9. Stosh says:

    How can they pay back the student loans when the jobs are going to H1B visa holders and illegal immigrants?

  10. Stosh says:

    How can they pay back the student loans when the jobs are going to H1B visa holders and illegal immigrants?

  11. wingmann says:

    Some people have The Midas Touch…others, The Minus Touch.
    Bo The Destroyer.

  12. wingmann says:

    Some people have The Midas Touch…others, The Minus Touch.
    Bo The Destroyer.

  13. Rotohammer says:

    The only ones laughing all the way to the bank are the professors and universities.

  14. Rotohammer says:

    The only ones laughing all the way to the bank are the professors and universities.

  15. Appalled By The World says:

    This ties in so well with the next story. Get regime money-get rid of pronouns.

  16. Appalled By The World says:

    This ties in so well with the next story. Get regime money-get rid of pronouns.

  17. 762x51 says:

    “The question is how do we prevent tyrants from imposing it”.

    As usual, the answer is in the question. Your use of “tyrant”and “imposing” says it all, Dave. There is only way to stop tyranny, to stop anything from being “imposed”, FORCE. We train in CQC every week, do you?

    Tyranny has never been stopped any other way.

  18. 762x51 says:

    “The question is how do we prevent tyrants from imposing it”.

    As usual, the answer is in the question. Your use of “tyrant”and “imposing” says it all, Dave. There is only way to stop tyranny, to stop anything from being “imposed”, FORCE. We train in CQC every week, do you?

    Tyranny has never been stopped any other way.

  19. 762x51 says:

    As I have said so often, shooting war in the streets. I personally do not believe the little dictator will leave office voluntarily. No one does the things he has done for the last 7 years if they intend to just pick up and leave.

    The timing is looking very good for the money printing to end AND the U.S. dollar to cease to be the worlds reserve currency at about the same time. If that happens you will need a pickup truck full of $100 bills to buy a loaf of bread. When people cannot feed their children, the fight is on.

    This is why I have said that you will see that war in the next two years. I could be wrong, but I doubt it.

  20. 762x51 says:

    As I have said so often, shooting war in the streets. I personally do not believe the little dictator will leave office voluntarily. No one does the things he has done for the last 7 years if they intend to just pick up and leave.

    The timing is looking very good for the money printing to end AND the U.S. dollar to cease to be the worlds reserve currency at about the same time. If that happens you will need a pickup truck full of $100 bills to buy a loaf of bread. When people cannot feed their children, the fight is on.

    This is why I have said that you will see that war in the next two years. I could be wrong, but I doubt it.

  21. Johnny Drew says:

    you have no concept of investing in infrastructure and human capital and education for the long-term benefit of our nation. everything to you is for short-term profit motive.

    all you can think is simple “no government” and “government bad” and have no concept of government investing for the betterment of our people.

  22. Johnny Drew says:

    you have no concept of investing in infrastructure and human capital and education for the long-term benefit of our nation. everything to you is for short-term profit motive.

    all you can think is simple “no government” and “government bad” and have no concept of government investing for the betterment of our people.

  23. trevor Taylor says:

    WRONG COMMIE FUCKTARD!!
    STEALING from some to redistribute is WRONG! It has never worked in the history of planet Earth MORON!

  24. Diego Serrano says:

    Is there nothing in the constitution to help get rid of he who works to sink the country??

  25. Diego Serrano says:

    Is there nothing in the constitution to help get rid of he who works to sink the country??

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  27. Zack says:

    you have no concept of investing in infrastructure and human capital and education for the long-term benefit of our nation. everything to you is for short-term profit motive.

    all you can think is simple “no government” and “government bad” and have no concept of government investing for the betterment of our people

  28. Zack says:

    you have no concept of investing in infrastructure and human capital and education for the long-term benefit of our nation. everything to you is for short-term profit motive.

    all you can think is simple “no government” and “government bad” and have no concept of government investing for the betterment of our people

  29. Zack says:

    Wow. It’s obious you are a retard who doesn’t anything about anything. Just attack people smarter than you like a jackass!

  30. Zack says:

    Wow. It’s obious you are a retard who doesn’t anything about anything. Just attack people smarter than you like a jackass!

  31. trevor Taylor says:

    WRONG COMMIE FUCKTARD!!
    I have not agreed with anything posted by either of your accounts COMMIE!! Therefore there is zero evidence of stupidity against me.
    If I attacked those smarter than me, I would be on your side MORON!

  32. Eddie_Valiant says:

    There’s this little voice in the back of my head saying the same things, but I’m going to continue praying for a peaceful transition. If it doesn’t happen, game on and it won’t be pretty.

  33. Eddie_Valiant says:

    There’s this little voice in the back of my head saying the same things, but I’m going to continue praying for a peaceful transition. If it doesn’t happen, game on and it won’t be pretty.

  34. Silence Dogood says:

    Oh please mr. nanny state. The gov’t can’t do anything efficiently or cost effective. That’s a fact. Go home and pray to your alter of big gov’t.

  35. Silence Dogood says:

    Oh please mr. nanny state. The gov’t can’t do anything efficiently or cost effective. That’s a fact. Go home and pray to your alter of big gov’t.

  36. phatazz says:

    “government investing for the betterment of our people.”
    That’s not the governments responsibility. If you or anyone else are relying on ANYONE or ANYTHING for “your betterment”, then you will ALWAYS be disappointed. BUT, at least liberals (you) will always have someone else to blame for being disappointed.
    Because LOSERS ASSESS BLAME, WINNERS ACCEPT RESPONSIBILTY.
    Want to “better” yourself? Do it yourself.

  37. phatazz says:

    “government investing for the betterment of our people.”
    That’s not the governments responsibility. If you or anyone else are relying on ANYONE or ANYTHING for “your betterment”, then you will ALWAYS be disappointed. BUT, at least liberals (you) will always have someone else to blame for being disappointed.
    Because LOSERS ASSESS BLAME, WINNERS ACCEPT RESPONSIBILTY.
    Want to “better” yourself? Do it yourself.

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