Current student loan debt projections that match Obama's plan shows student loan debt increasing to $1.8 trillion by 2020, the same year Obama's goals are met. Put kids through schools and make them professional debtors until the bubble bursts and the banks require another federal bailout to make up for this federal plan which has all but destroyed the free market in education. Since the federal student loan program began, schools are less likely to keep costs low and the quality of education high knowing how much federal money is guaranteed to students every semester. It's one of the greatest scams in American history, and it's destroying the American dream as students fresh out of college are now enslaved to taxes and student loan debt. Had the federal government stayed out of higher education, free market economics would ensure competition and lower tuition.
More bailouts you ask? Yes, this money is backed by the federal government, which means you the tax payer will end up with the burden once students from college realize they can't afford their $500, $1000, $1200 a month student loan payments anymore. It's clear, based on Obama's goal to put more kids in under-performing colleges that Obama, and Congressmen like Billy Long who have gone on record stating the need for more college graduates are pushing for the next major crisis in America, probably after the commercial real estate bubble pops.
This idea of pushing more college graduates is leading to more economic destruction, and Obama is obviously ignoring the lessons of the past taught in the halls of Fannie Mae and Freddie Mac. Like federal government thought all Americans should own a house by forcing banks to lend, they are doing the same thing in education. We have to stop this madness. It's time to end the federal student loan program and force schools to become more competitive, which will lower tuition rates around the country and force colleges to cut their bloated budgets. If we don't, taxpayers are going to have a trillion dollar student loan bailout within the next ten years.
