...In 2007, the Pelosi-Congress reduced interest rates on government-subsidized Stafford loans from 6.8% to 3.4%. Like every stimulus measure during that era, it was supposed to be temporary. Now there is a bipartisan deal to ostensibly make it permanent (they say it’s only for 1 year, but we’ve seen that rodeo before). They only care about the $6 billion annual cost to the government, but fail to focus on the more fundamental problem – the fact that government subsidies will continue to fuel the education bubble, engendering a further need for larger subsidies. Hence, the circuitous cycle of government intervention and inflation will continue unabated....
Instead of debating how to pay for more subsidized loans, Republicans should articulate the case for phasing out this unlimited subsidization of higher education. Since the Department of Education was created, the cost of college tuition has increased over 439% adjusted for inflation! The rate of increase is almost exactly commensurate with the rate of growth of DOE subsidization...
It's all just "co-incidence" resulting from "comity" in the Parliament of Whores.
Hey dad, did you read this one?
"Racket of college loans"
One of the ways to cut the big-spending binge engaged in by the federal government is to terminate the racket of college loans. They are counterproductive, discriminatory, and a bad investment for both taxpayers and students. College-loan debt has soared to nearly a trillion dollars, more than credit-card debt or auto-loan debt. Financial commentators are beginning to compare college-loan debt to the housing bubble that nearly brought down the banking system in 2008....................
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