President Obama has raised the income requirements to get a break on college loan payments. He's also limited borrowers to a maximum of 20 years of payments (10 if you're in a 'favored' profession like government bureaucrat) at no more than ten percent of the indebted's income. In essence he's just given a massive subsidy to the students who borrow the most, in particular the relatively high income doctors and lawyers aka: his homies.
By limiting how much any borrower must pay back this plan encourages kids to borrow more which encourages colleges to charge more. So now the lunatic higher education inflation rate will be driven solely on the backs of taxpayers. And once again more of Obama's homies (the higher education borg, this time) make out like bandits. Funny how the bien pensants always end smelling like a rose, isn't it?
Now the rational thing to do would have been to radically cut lending levels, forcing prices down and a lot of high cost producers out of the market. This and encouraging testable skill certifications rather than degrees and learning rather than campus attendance would go a long ways to increasing the value while reducing the cost of what has become a ridiculously expensive boondoggle. But this would freak the President's academic base out so of course he would never dream of doing anything so rational.
Sigh.
No comments:
Post a Comment