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Re-Election Threatened By Student Loan Debt

From a white knuckled Associated Press:

Recovery threatened by runaway student loan debt

April 3, 2012

WASHINGTON (AP) — The federal student loan program seemed like a great idea back in 1965: Borrow to go to college now, pay it back later when you have a job.

But many borrowers these days are close to flunking out, tripped up by painful real-life lessons in math and economics.

Surging above $1 trillion, U.S. student loan debt has surpassed credit card and auto-loan debt. This debt explosion jeopardizes the fragile recovery, increases the burden on taxpayers and possibly sets the stage for a new economic crisis.

The AP left out Obama’s re-election. Perhaps they felt it went without saying. Since, after all, nothing else matters.

With a still-wobbly jobs market, these loans are increasingly hard to pay off. Unable to find work, many students have returned to school, further driving up their indebtedness.

Average student loan debt recently topped $25,000, up 25 percent in 10 years. And the mushrooming debt has direct implications for taxpayers, since 8 in 10 of these loans are government-issued or guaranteed.

Don’t worry. Obama has promised to go after the deadbeats, hammer and tong. After all, it’s his money.

President Barack Obama has offered a raft of proposals aimed at fine-tuning the system and making repayments easier. Yet the predicament of debt-burdened former students has failed to generate much notice in the GOP presidential campaign. Instead, the candidates are dismissive of government student loan programs in general and Obama’s proposals in particular.

Obama feels their pain and has promised to solve this problem. (Such as hiring more debt collectors to mercilessly dun the deadbeats.) But the evil Republicans don’t care.

Lifting student debt higher and higher is the escalating cost of attending schools, with tuition increasing far faster than the rate of inflation

And nobody in the news media or the rest of the Democrat Party ever calls them on these price increases. Because colleges are the Democrat Party’s factories. Colleges crank out the liberal apparatchiks the Democrat Party depends upon to hold on to power. And it’s all about power with them.

And if these kids are burdened with debt for the rest of their lives, that’s their tough luck.

It’s not just young adults who are saddled.

"Parents and the federal government shoulder a substantial part of the postsecondary education bill," said a new report by the Federal Reserve Bank of New York. And some of the borrowers are baby boomers, near or at retirement age. The Fed research found that Americans 60 and older still owe about $36 billion in student loans.

Overall, nearly 3 in 10 of all student loans have past-due balances of 30 days or more, the report said

Naturally, the government will have to do something about this crisis. Such as ‘forgive’ all these loans. Hopefully, before the elections.

This article was posted by Steve on Tuesday, April 3rd, 2012. Comments are currently closed.

4 Responses to “Re-Election Threatened By Student Loan Debt”

  1. P. Aaron says:

    Obama’s legacy: debt, borrow, finagle, spin, there’s never an attempt to appeal to one’s reason with this guy. It’s all force, coercion, threats. That ain’t hopeful.

  2. untrainable says:

    No surprise here. An entire generation of indentured slaves. That was the plan. The next step in the plan is to suck all the useful idiots into government service as a partial payment for their “education”. Government will forgive your 4 year debt by letting you work for the government for say… 10 years. Once they’ve been through 12 years of in-school brainwashing, followed by 4 years of college brainwashing, followed by 10 years of government service, that can only be followed by a liberty-free existance. But they’ll be too ignorant to realize what has been taken from them.

  3. AcornsRNutz says:

    “And if these kids are burdened with debt for the rest of their lives, that’s their tough luck”

    It’s not that so much as they simply don’t care. Debt is a joke to these idiots. The national debt? Ignored. Auto bailout debt? The majority of it was “forgiven” to allow the gov to keep control of the companies. Fannie and Freddie and anyone else wrapped up in this sub prime thing? Whatever became of all that debt? This is to say nothing of the liberal mindset that the government will take care of them anyway, so personal debt is a non-issue. I mean, who really has to pay the government back for student loans? No one else seems to.

  4. Anonymoose says:

    Untrainable you may be right, I wouldn’t be surprised to see that happen.

    Student loan debt is something I’m particularly bitter about as I get into debt as a naive twenty something, and after having to change programs ended up owing twice as much as I planned. Student loans can’t be discharged by bankruptcy, even if you go to jail they’re still out there accumulating interest.

    The next thing to break in the economy isn’t student loan debt but the entire high education system. In the old days very few people went to college; those who did got out at the very least were head and shoulders above the rest of the working class, anyone who had a really good degree like engineering would do well and make lots of money to put back into the school as an endowment or into the community. People could seriously pay for school at a state college by working summers.

    Today? Since the 70’s college education has lost it’s value. Employers demand a college degree for practically any job as it’s supposed to ensure quality and smart people. Everyone goes to college, and all over are two year, community, and technical schools calling themselves colleges. The big state universities are now diploma mills, cranking out thousands of graduates every semester.

    State funding for these schools is either dried up or fading fast, so they keep raising tuition. Kids practically have to go college to be employable, but there’s no guarantee they’ll be able to get a job and even less that it will justify all the debt.

    We’re already at the point that student loan debt may exceed a person’s lifetime ability to pay it. It used to be only doctors and lawyers going to big name schools wold get out with $50-100K in debt, now it’s graphic designers and MBA’s.

    Even worse, degrees lose their value fast, and people are now expected to go back and retrain–facing even worse odds as they get older.

    If employers would let go of the degree requirements (to be blunt most jobs don’t need it) and focus on candidate’s work history or offer on the job training……but that would take time and money and it’s easier to just demand a college degree.

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