April 18, 2014 |
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Unfortunately the banks have found that it's highly lucrative to deal with repossesed homes. When a home loan is defaulted on the banks continue to acrue intrest, penalties, attorney and collections fees until the property is 'auctioned' and the bank buys it from itself at the total amount owed and our government picks up the tab for the difference as a 'loss'. As the economy stabilizes and there are fewer foreclosures they need another method to keep the cash flowing. Enter the government guaranteed student loan program. Private loans that will be defaulted on, fees asessed and interest acrued - and the banks will get every penny - even after the loan goes bad.
I believe college tution went up as more and more student loan money became available. This began in the 70's. When I went to school I had only one loan for $750 that was a national defense student loan. 50% was forgiven for serving two years of active duty. Tution was $299 a semester flat rate when I graduated in 1974.
Why do banks give student loans? Because they are govt backed.
"As the economy has shrunk and the cost of college has increased, financial aid has gone up as well. Between 2006-7 and 2009-10, the percentage of first-time, full-time undergraduates receiving financial aid increased from 75 percent to 85 percent at all four-year colleges." --Chronicle of Higher Ed
If there was no student loan program, it appears campuses across the country would be empty. If half of the 80% could not afford college without a loan, we would have about 7,000,000 adults looking for full time employment each year out of high school.
I know that greed is wrong and you should help your fellow man. And I know that power corrupts and absolute power corrupts absolutely. But will someone please tell me when it became evil to expect to make a profit on your business? And when did it become wrong to open a business in an area that a person could expect to reap the most rewards? If you want the business to stay, make it beneficial. Darn it! I forgot that we are in the redistribution of wealth period. Those bankers and stockholders must not have gotten the memo.
The Bankers funded the home loan fiasco because the liberal government forced them to do it in the name of fairness. And I think those same liberals will be calling for loan forgiveness in the near future for all those college kids also in the name of fairness.
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