Sunday, January 12, 2014

ObamaCare and Student Loans



Here is another example why ObamaCare can never work as advertised.
The government has taken over the student loan business. And it is costly.
Furthermore,taxpayers will put up $100 Billion as a start.

The problem here is that private lenders did a better job of evaluating risk and collecting bad debt, than the government. Any estimates of “savings” by the government is a fantasy.

Government figures, for example, never have those the private lenders include, such as two-year college programs with much higher default rates. What is more, the government has a poor service record among student borrowers.

In fact, government proposals are now on the track to eventually forgive whatever loans students never do pay back.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.

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