Obama Touts Plan to Change Student Loan System
Obama proposes a good first step in the failed student loan system--get the banks out it! Like credit card debt, banks have been saddling students with debts many cannot and will no repay. Unlike most European countries, where public college tuition is free (publicly funded), American students now primarily rely on student loans to cover the rising costs of college tuition and other expenses (food, housing, etc.) It's another financial crisis about to explode.
Obama wants to eliminate government subsidies to private banks, which profit from student loans while the government "guarantees" the loans (profit without financial risks for banks), and make all student loans directly from the Dept. of Education.
This is a good first step, but doesn't go far enough. Public education should not stop with high school, it should continue through college. There should be NO student loans, and no student loan debts. All current student loan debts should be forgiven.
This is also another way to "stimulate" the economy. Instead of struggling to pay down loans, college graduates could be buying homes, cars, etc., i.e., stimulating demand and economic growth.
Of course, the right-wing conservatives are already crying "socialism" just for Obama's meager proposal.
Education, like healthcare, should be a RIGHT, not a privilege for the wealthy, or a commodity for banks to profit off the backs of struggling students.
If the U.S. government can "bail out" rich Wall Street bankers and financiers, why can't it bail out students??
WHITE HOUSE: Student Loans--Cutting Out the Middle Man
Forgiving Student Loan Debt Would Stimulate the Economy
See Student Loan Justice
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