Analog to the obvious upcoming student loan fiasco, many believe that the Democrats forced U. S. banks into loaning money to people not making enough money to pay their mortgages back. That in the name of "fairness" and "equality" subprime loans became the norm, with the government-sponsored entities Fannie Mae and Freddie Mac wildly jumping aboard. Underwriting, what's that? Soon came the inevitable crash, when many of those loans defaulted and property values dropped causing more default. (Just this year -- six years later, President Obama appointed unemployed Democrat politician Mel Watt as head of Federal Housing Administration; Immediately going against his rational predecessor, he immediately relaxed new mortgage loan requirements back to subprime specifications.
President Obama, in a clear anti-free enterprise, anti-private sector, pro-Democratic Party, big-fat government move, ordered that most student loans need not be repaid IF the students (graduates or not, I am not sure) work in the government sector or for non-profits (the bulk of which are Democrat-leaning) for ten years. If the students lower their goals and go to work for the for-profit, private sector they have to work twice as long -- twenty (20) years -- to be forgiven. And so as not to tax, so to speak, the former students they need only pay 10% of their income to service their government student loans (which will typically not pay the interest accruing, thus increasing what they owe). This arbitrary and unilateral action incents workers to obtain lower-paying jobs, -- in non-profits, for example -- to allow them to pay less. And speaking of "tax," yestthe real taxpayers, the so-called 5% who pay % of all income taxes will pay off by forgiving allt those student loans...TRILLION
Like our healthcare system, our housing/financial system, among many. many others, our educational system has been ruined by "fairness" and "equality" coming along with piles of free government money and its central control by Ivy League elites. Until the country and its voters clearly understand that central control of most anything by politicians leads to disaster. And that freedom to act, freedom to innovate, freedom to be unfair by "We the People" brings higher standards of living for all. Our "poor people" excluding the mentally ill or substance abusers, live better than most everyone else IN THE WORLD. That has been brought about by the "Robber Barons" of the Rockefellers, Morgans, Carnegies two centuries ago, the Fords, Sarnoffs and Olsons, Gateses and Jobses of the last century and myriad others already in this new centur