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  • blazenyBy Becket Adams, The Blaze

    Excerpt:

    The Vice President went on to argue that if Bank of America, despite all of its mistakes, can be rescued by government intervention, then, naturally, America’s youth should receive similar financial assistance.

    But outside of openly admitting that government intervention has led to price hikes, what else does the Obama administration’s proposal to expand student-aid through increases ($1 billion to $8 billion) in the Perkins student-loan program mean?

    “To anyone who hasn’t graduated from college recently, this might sound great. To those of us who have, it’s terrifying,” writes Ron Meyer, a program officer for Young America’s Foundation,in a recent New York Post op-ed.

    “Making it easier to get a student loan now is as devious as making it easier to get a mortgage a decade ago — the government is encouraging people to take on more debt than they can handle,” Meyer adds.

    Indeed, many critics believe that it was this type of action that caused the housing market to collapse.

    “Many recent graduates face the same situation as the people who took out subprime loans from 1998 to 2007; the government encouraged them to take out massive loans that they now can’t afford. Student-loan defaults hit a record-breaking 8.8 percent last year,” Meyer writes.

    “Growing the student-loan program means dooming more graduates to this same fate. Tuition costs continue to rise at twice the rate of inflation, and average graduating-student loan debt has grown 12.5 percent since 2008 (in real terms) to $26,300.”

    Although the president has promised to fight increases in tuition by reducing funding to colleges that raise it, he has failed to mention that the “vast majority of federal funding comes to colleges through student loans,” which he intends to expand.

    Full Article: *The Blaze*

     

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