Here we go again. Fannie and Freddie, chapter III. The Congress, led by Barney Frank, Chris Dodd, and Dick Durbin, want all Americans to own a home. So, they loosen up Freddie and Fannie to insure any warm body who wants a mortgage gets one. Banks can’t write mortgages fast enough. Down comes the house of cards and the perpetrators are all pointing fingers at every one but themselves. Barney Frank even sounds more like Elmer Fudd when he’s accused of playing any role whatsoever in this. Documentation or not, Barney is 100% innocent of any involvement in this debacle.
Now comes Barack and Arne. Obama and Duncan, Secretary of Education, have shoved through a bill that will make it illegal to have any private institution to make a federally guaranteed student loan. Coincidentally, the Arizona Republic ran an article that student loan defaults are at an all-time high. So, just as the business of student loans hits bottom, the Federal Government has set up a single loaner system. Perfect timing. The ban that passed the house has $67 billion in savings, but $77 billion in new spending. Plus, the data used by the CBO doesn’t take into account the new spike in past due loans.
The Feds want the banks to process the loans. Guess why? Because no one can get through the red tape it takes to get a loan direct from the government. How’s that health care takeover looking to you? Maybe worse than you know, since the scumbags may use reconciliation to pass this, since, like health care they can’t get it through the senate.
And, according to the CBO, many colleges oppose the Federal plan because the Feds don’t make the same effort to to prevent defaults that private lenders do.
Students have make more loans through the private options, since they might be Juniors before they can complete the paperwork and get approval with the government plan.
While he’s at it, Arne Duncan is working on a new round of anti- discrimination adjustments to the educational system. This is completely unconstitutional, but no one in the Obama administration cares a whit about the constitution.
This is the Obama promise that anyone who wants to go to college can. Another given entitlement in America. But, even before he and Arne open the floodgates, the default rate in student loans is soaring.
The Federal Government can’t even manage the wild horse program in this country. That budget is now $70 million. Up from 39 million under Obama.
