IBD
Posted 10/26/2011 06:44 PM ET [Read
the full article]
Government: President Obama wants student loans to be more like student
handouts. Too bad he hasn't learned one of the lessons of the 2008 mortgage
crisis: Free money costs plenty.
The
global financial crisis has its roots in the U.S. government's politicization
of mortgages.
Now
President Obama proposes applying the same mortgage mistakes to student loans.
On
a day on which the College Board reported the cost of public colleges rose 8% —
about twice the inflation rate — Obama unveiled a student loan forgiveness
plan.
Under
his plan, loan recipients would repay at just 10% of their income instead of
the current 15%. And the government forgives what's left after 20 years.
But
the latest Rasmussen survey found only 21% of Americans favor letting college
loan recipients not have to pay the money back.
Could
it be that the 66% majority opposed to student loan forgiveness have learned
the mortgage crisis lesson to which Obama seems tone-deaf? Or that they think
the younger generation might learn something their liberal college professors
haven't taught — namely the morality of keeping their financial promises?
Wealth
redistribution or generosity?? Guess
again! It’s all about the votes !!
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