Student Loans Resurfaces Again As The President Launches New Ideas To Fight Debt & Tuition

This post is in response to this video: 

While i agree higher education is important I don't think the gov't needs to be involved in any business with student loans. The President is saying government loans for higher education will CAUSE citizen's lives to be better. Completely wrong. Kids are graduating with a lot of debt (avg of $27k+) outta college and its become the "new" house mortgage. There are $1 trillion+ in student loan debt outstanding in our country. Note that roughly $864 billion is outstanding federal student loan debt while the remaining $150 billion is in private student loans - which means yes, the government IS a big player in the student loan business. The schools figure that they can "sock it" to the government, ignoring the fact that students and parents still end up paying the bill, plus interest.

Anything the government provides for "free" will raise prices. Same with mortgage interest deduction (raises house prices), adoption credit (raises adoption fees), free contraception (will raise price of contraception), healthcare (2 to 3 times costs as before in many areas)...there are so many more examples. Eliminating government loans will lower prices and make education more streamlined as universities will have to lower prices with less availability of "free" government loans.

And don't forget donated to our President's campaign - big donors in UCal, Harvard, Columbia U, U Chicago, U Michigan, the list goes on. The Universities have the President in their back pocket to take action - like the President describes in this video - that will keep continue keeping tuition high so they can reap the profits.

So the bottom-line is this: Get the government out of the business of student loans. Tuition will fall through the floor as students will not be able to afford the bloated rates caused by the "free" government loans. Problem solved. The Federal Government should quit trying to add more policies on top of failed policies - repeal the failed policies and see how the market works for a few years before dumping more legislation on the market. Common sense by Thomas Paine.