Obama is pushing the Senate Democrat plan of allowing those with student loans to refinance at a lower rate courtesy of the taxpayers. The GOP is pushing back saying this program would add another $51B to an already overloaded government. But in true liberal style, Obama says it’s only (other people’s) money:
Whoo-eee, can’t wait for that new, exciting executive overreach by our Dictator in Chief designed not to fix the problem but to get more votes for Democrats.
Of course Obama would never attack the real problem with college—that it is too damned expensive because of administrative bloat–he would rather attack the lenders, since academia is one his most ardent supporters—both vote wise and $$$$ wise.
But there are alternatives offered as suggested in this Chicago Tribune editorial:
“…colleges that benefit from subsidized loan money should be liable for part of the debt if a student defaults: Schools would have incentives to accept applicants who have a reasonable chance of graduating—and to warn prospective and enrolled students, loudly, that college loan money isn’t free”.
As it stands colleges don’t care if you major in basket weaving or gender studies, if you’re borderline retarded or the head of your class—they get their $$$ either way. If the schools had some skin in the game, well the game would change, wouldn’t it?
And the onus would be on the schools not the taxpayers.