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(PL) Student loans, What Happened?

(Opinion)

The issue of student loans has again been a very hot topic as of late.


I am fairly convinced that the majority of people out there doing all of the bitching do not have a clue what caused this problem of massive student loan debt in the first place.


1965


The Federal Family Education Loan program was established using federal funds as "loan guarantees" to make it possible for lower income or poor credit borrowers to attend higher education.


The idea in my opinion was originally to expand the ability to educate U.S. citizens so that Marxism and its poison tendrils would find it much more difficult to worm their way into our society.


The more educated a population is the harder it is for academics and grifter politicians to usurp power and control over them.


You cannot recognize brainwashing unless you understand what brainwashing is for example.


People think they understand what brainwashing is because they know the definition of brainwashing.


However, the definition is simply the beginning, we must go deeper, learn the methodology, understand the techniques used otherwise how would we ever be able to recognize them?


For over half a century the FFEL was an astoundingly successful program helping some 60 million people attend higher education that would have been prevented from matriculation by their social or financial status.


However, as government so often does, they try to fix what is not broken, why?


Money, plain and simple.


The Democrats didn't like the idea that private lenders were reaping the profits of these low interest loans.


Since those loans were federally (taxpayer) guaranteed the Democrats wanted the profits while the Republicans maintained their stance on choice and limited government interference in the loan process.


Also, during this time, the expansion of PELL Grants and many other programs increased the availability of loans to lower income borrowers, the subsidies paid into the FFL program became smaller and smaller.


The number of FFL loans however increased substantially, and it was the private lenders that remained profitable due to lower costs and interest rates.


The system was working great, maybe not perfect because nothing ever is.


That all came to a grinding halt in 2008 with the financial crisis and other "mitigating factors" resulting in the FFEL loans no longer being profitable.


Long story short the progressives/Marxists stayed true to their motto and did not let that crisis go to waste.


Barrack Obama after announcing that he was killing the FFEL program and shortly after that he pushed the Health Care and Education Reconciliation Act of 2010 (HCERA) through congress.


Don't get me wrong here, that bill did a lot of good things but that is the progressives/Marxists MO.


They hide their poison within pretty packages that make people happy.


However, this was the moment that the federal government took over education loan programs.


Now, on a personal note, I was going to a Technical College at the time Obama was in office and my financial aid was cut every semester even though I was signed up for the same number of credits every time.

The first time I took out student loans the process was much simpler and had more value under the FFEL program than it was under Obamas HCERA program, that shite was a pain in the arse and they nickel and dime you to death.


So, I know what I am talking about, and I am sure many of you do as well if you had (and paid back) loans under both programs.



 

In a nutshell Obamas HCERA replaced one of the most successful educational loan programs that allowed more American citizens access to higher education.


So, what were the results?


First off, cost.


Due to rebuilding the loan infrastructure to direct lending with financial institutions etc. by 2014 it added an est. 1.4 trillion dollars to our deficit and a timeline of 10 years before we would know if those billions of-dollar profits they claimed actually manifest themselves.


After 10 years it would be near impossible to reverse this program and they damn well knew it.


If they had used our tax dollars wisely and kept subsidizing the FFEL program, that $1.4 trillion added to our deficit would have shrunk to no more than $22 billion over that same 10-year period.


One has to ask themselves why they would do that when keeping the FFEL, a very successful program, would have saved us taxpayers, the ones whose money they are playing around with billions of dollars.


Secondly, the biggest flaw in Obama's HCERA program was that it did nothing to address the skyrocketing costs of tuition that go back at least to the early 80s and have not stopped going up since then.




So, what is the connective tissue here you might be asking.


Human nature primarily, I mean think about it, if you are guaranteed tuition money by the federal government (taxpayers) people are going to give in to greed and start jacking those costs up for more profit but the tendons, that's simple.


Inflation.


The cost of tuition has risen so high due to inflation and as we all know inflation comes from one place, reckless government spending.


Like instituting a program with a 1.4 trillion-dollar price tag over 10 years when we could have kept subsidizing the FFEL (a far better program) for 22 billion over that same ten years, you know, reckless spending like that.


But those of us in the know, well we know what is going on behind all of this chaos don't we?


Solution!


Lower inflation by reigning in wasteful government spending and the price of tuition can go down meaning students will be in less debt when they graduate.


Seems like a simple solution to me but as long as the misled masses are running around blaming "white supremacy" "Homophobia", "Transphobia" Misogyny" Sexism" blah blah freaking blah for their college debt that they agreed to pay back, that is simply never going to happen.


The progressives/Marxists in our government wanted the profits from those student loans and Obama handed it to them on a silver platter with HCERA.


They are not about to give that power, control, and most importantly money up without a big fight.


As for the misled masses (this is not a derogatory term by the way) all you guys have to do is start asking all of those questions you don't want to ask because you don't want to know the answer to.


I know they are there, in the back of your mind or you never would have made it this far into my scribble.


The only thing that keeps us where we are is ourselves.



 

Now, I know that there was a lot of other factors that went into this whole scenario, I just hit on the main points that if people would just take a minute to apply some good old common sense to, they would realize some things very quickly.


  • They have been lied to which should lead to the questions "why are they lying to me" and then "what else have they been lying to me about?


  • The government is the entity responsible for the skyrocketing tuition rates because of primarily inflation that the government also created.


You are paying out the nose and graduating with massive dept directly because of the actions of our government.


Not "white supremacy", "Homophobia", "Transphobia" or any other ism, phobia, or other alphabet salad people are crying around about.


So, if you students want lower tuition resulting in lower debt you need to point your fingers at the people who are actually to blame for your debt, the government or more specifically the progressives/Marxists in our government.


Stop relying on the people who created and are perpetuating your problem to turn and solve it for you, IT AIN'T GOING TO HAPPEN my friends because they are making billions off of your problem.


You have to remember, these people pay no consequences for being wrong, we pay they consequences and if want this to change you are going to have to MAKE it change.


First step is putting the blame where it belongs.


Take a while and consider what I have said, checkout and verify what I have said always but keep in mind that I am a simple purveyor of information, a road sign, it is entirely up to you what if anything you choose to do with that information.


Just something to think about, till next time.



 











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