Last week Congress passed a bill to keep the interest rates of student loans from doubling.
We all know the facts behind the student loan situation. Or do we ?
1- Now that Obama has taken over these loans, another government takeover, they are now costing us, the taxpayer, almost one trillion dollars per year. That’s trillion , with a T.
2- The total student-loan debt is now higher than the total credit-card debt. I don’t have to repeat that one, do I?
Many years ago,when my sons were applying to college, I heard of something called “Pell Grants.” We were not eligible for them, because this program, started in 1972, was strictly intended to help poor families pay for college. Sounds like a really noble idea? That’s of course, until the progressives got hold of it.
Now, years later, in 2009-2010, Pell Grants cost us $36 billion dollars a year. It takes up one half of the entire Department of Education’s budget and it is the federal government’s biggest expense involving higher education.
Maybe that’s not so bad since it is helping “ poor students”. Well, think again,
OK, here we go :
1- Now, 60 percent of all college students receive this grant. I didn’t realize there were so many needy students. Again, 60 percent of all students.
2- Between 2008 and 2010, thanks to President Obama, the number of Pell Grants increased 50 percent, doubling the taxpayer cost.
3- How do all these students demonstrate that they are truly poor? To avoid getting “means-tested,” they declare themselves “financial-Independant “ and they’re in.
The bottom line :
1- Universities just adjust their tuition accordingly. Student aid results in higher tuition and
2- According to the latest study, graduation rates, remember that’s the goal of all of this, were lower for students receiving Pell grants than those who didn’t get them.
3- A major problem facing the the taxpayer, is that the number of students who don’t finish college.
Those with no degree must still pay us back the money they borrowed. Furthermore, 10 percent of all graduates are already behind on their payments within three months of graduation.
Remember, last month, when President Obama, in one of his famous speeches in front of a “enthralled “ audience of college students, bragging that he expanded this program to include three million more students?
Do you feel differently about this now ? I do.
Dr. Stephen Morris
North Hills
