Obama nationalized the student loan industry and now they are suggesting that the loans be paid off. That way, not only will I pay for my kids’ degrees, I will pay for the degrees of every student who defaults. Why? Because I am a sucker.
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.
A trillion dollars, larger than the stimulus boondoggle. Of course that trillion will be paid with monetized debt and reduced standards of living for everyone. That’s okay, the further erosion of our standard of living is a small price to pay for the benefits we will all receive from the education of hundreds of thousands of Womyn’s Studies majors.