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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (28417)	3/30/2010 11:21:21 AM
From: longnshort	4 Recommendations Read Replies (1) \| Respond to of 103300

That will cost the gov more and the gov will need adminstrators, many of them making over 100k. I did contract work for the gov, one agency I did work for had this administrator and 6 workers, 4 of them did nothing all the time. I went in weeks later and he had 10 people under him, now 8 doing nothing. I said what's up. he said I found out if I was in charge of 10 people I got a big raise.

To: DuckTapeSunroof who wrote (28417)	3/30/2010 11:30:56 AM
From: longnshort	1 Recommendation Read Replies (1) \| Respond to of 103300

Message 26423396

To: DuckTapeSunroof who wrote (28417)	3/30/2010 3:32:25 PM
From: Wayners	1 Recommendation Read Replies (1) \| Respond to of 103300

They shouldn't give loans out for unaccredited colleges and bogus trade schools. The default rates on such loans are enormous.

To: DuckTapeSunroof who wrote (28417)	4/6/2010 9:39:23 PM
From: Wayners	1 Recommendation Read Replies (1) \| Respond to of 103300

Student loan "reforms" were slipped into the health care bill. Obama wants to reduce the cost of providing student loans by taking the profits out of the industry. According to Obama, student loans are too expensive because banks profit from making them. If the government nationalizes the function, we would apparently bring down costs by eliminating those pesky profits. This is a Marxist argument, pure and simple. If true, it would apply to all industries, not just banking. States like Cuba and North Korea would be the envy of the world, as they prohibit profits across the board. The truth is that profits, earned from free-market competition, keep costs down. By taking the profits out and putting the bureaucrats in, any incentive to provide better service or lower costs is eliminated. It’s not hard to predict that student loan costs will now rise faster than ever. That is clearly not the result we want. To solve the problem, people must understand that college tuitions are so expensive specifically because the government has guaranteed student loans. Guaranteed loans don’t mean more access to education, but rather that universities are free to charge more per pupil than if their customers were paying out-of-pocket. Obama’s plan only serves to remove more market forces and creates an even bigger moral hazard. Under the new rules, students will be required to repay a much smaller portion of what they borrow. As a result, students will be willing to borrow even greater amounts of cash to pay inflated tuitions, making it that much easier for colleges and universities to raise them. Also, since the government will actually be loaning the money directly, rather than simply guaranteeing private-sector loans, the Treasury will actually have to borrow the money itself before it can re-lend it to students. I suppose the irony of going into debt to loan money never registers in Washington. Further, as this bill will cause tuitions to rise even faster, it will necessitate even larger loans that will produce even greater taxpayer losses when the loans end in default or forbearance.