Wednesday, March 24, 2010

Democrats are correct in Student Loan overhaul

Banks on Verge of losing Student Loan Business

The banks had guaranteed income. That is wrong. That is not business, that is welfare. Or to put it more nicely that is a subsidy.

Banks or anyone else should have to take a risk in order to make a profit. On alternatively they should provide a benefit that the public sector couldn't match.

For instance if the banks were making decisions concerning who was credit worthy, I'd rather have thousands of banks doing that rather than the government.

However, getting a loan for college is prospective of the person's future, and guaranteed under the law.

This is an example of Republican/Conservative over-reach. The banks should never have been able to make money off of student loans through fees and interest.

If this was like a home loan where people have to meet certain standards and there is at least somewhat of a decision process, I would support the process much more.

Bt the way it very well can be made into that by judging a person's academic history, and other experiences to judge the chances at graduation and getting a job. If our system added that component, and the banks took responsibility for their decisions, I would support some government subsidy.

But mark this one down for the left.

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