imagine that! More government control over our lives, because as we all know, they are more capable of telling us what is right and wrong than we are

Nonpartisan congressional budget analysts project that the measure would save about $61 billion over 10 years. Savings would go increased federal grants to the neediest students as well as to other education programs, including funding of community and historically black colleges.
* * * *

So, the "savings" would be spent.

No wonder the deficits are exploding. We simply can't afford to save any more right now.

Comrades! great news, while the masses concentrated on our new socialist health care system, we were able to nationalize the student loan program. The capitalist banks and their 34,000 employees have too long controlled the fates of so many with their free market poison. The state will now take our youth from our government controlled public schools and we will decide for them if additional education is warranted and which school is appropriate for that training. When they are sufficiently trained we will help them into the new economy. They will of course repay the government for this, as our brothers in the IRS will ensure that they pay these loans back. Comrades we have accomplished so much in the past 14 months but we have so much to do. We must now turn our efforts to help our brothers in the labor unions to ensure their continued growth and support.

This might be the best part of yesterday's legislative accomplishment.

OMG! The poor bankers are losing their free subsidies from the government and those evil Democratic Communistas are going to use that money to educate poor folks!!! Doesn't anyone care about bankers any more????

#4...

If it is such a great idea, why was it piggybacked on the healthcare reform legislation? Why wasn't it a seperate bill that could stand on it's own merits? I'll be the first to admit that I am naive how this will change the student loan programs. How is it any different than the mortgages, where money is loaned out by private enterprises and insured by the federal government? It appears to me that instead of banks loaning the money, now the Gov will be the ones making the profits. Not to mention be on the hook for all defaulted loans.

"If it is such a great idea, why was it piggybacked on the healthcare reform legislation?"
#6 | Posted by crispee_oc

Probably for the same reason that healthcare legislation took over a year to pass. Obstruction/

"It appears to me that instead of banks loaning the money, now the Gov will be the ones making the profits. Not to mention be on the hook for all defaulted loans."
#6 | Posted by crispee_oc

We already are on the hook for all the defaulted subsidized loans.

"Not to mention be on the hook for all defaulted loans."

Who do you think is on the hook now Crispee? That was the whole point. The banks had zero risk on loans because they were already guaranteed by the government so why should they be guaranteed a profit by the government?

#7,8...

OK I understand that point. Now how is it any different now that the Gov takes over the program? Instead of banks making a profit, now the Gov makes the money? My understanding is that the Gov will be charging around six percent interest, yet they can loan it at around two and half percent. That is one hell of a return.

So, the "savings" would be spent.

Why can't they just say they are reallocating funds from private student loan companies to government run programs?

Wow imagine that. End the use of private financing in place of government subsidies. Government control at your service. Just bend over and take it with a smile :)

Auto Industry
Banking Industry
Health Care
Student Loans

What next? Will Fannie and Freddie own the student loans and be bankrupt in 10 years?

Stay tuned.

There is only one bank in South Dakota allowed to make the loans. Could South Dakota be as morally bankrupt as Illinois? Apparently yes.

Wake up folks,

"...that government should instead combat the legacy of slavery by improving schools, health care and the economy for all."

#13 | Posted by paneocon at 2010-03-22 10:02 AM | Reply | Flag:

You're a fucktard, Paneocon.

Will someone please think about the poor bankers!

This is a win win. The government was already on the hook for the losses, so why not cut out a layer of bureacracy and make the loans direct and in turn use the savings to provide more loans for students.

But my God we can't have more access to education! How in the hell will the upper class control a well educated population?

#10 | Posted by taxman at 2010-03-22 09:59 AM

Again, I am pleading ignorance, but what was the criteria and how were students selected to receive loans? Was it based on income? Was everyone who applied automatically granted loans?

The only association I have had with student loans is via the mortgage industry when looking at a credit report. I did not have to use the monthly payment as a liability in the ratios if they could prove they were still in school. For those who were out of school the monthly payments were very, very low compared to any other long term loans.

re: Now how is it any different now that the Gov takes over the program? Instead of banks making a profit, now the Gov makes the money? My understanding is that the Gov will be charging around six percent interest, yet they can loan it at around two and half percent. That is one hell of a return.

#9 | Posted by crispee_oc at 2010-03-22 09:46 AM | Reply | Flag:

Good question. The gov't won't be loaning it a the lowest possible interest because that would screw over private lenders. The "profit" is to go to grants for the neediest of students, instead of to banks, as was the previous arrangement.

Nice come back BETELG. What happened yesterday was the down payment Obama's promise to" redistribute the wealth". Elections have consequences.

"This is a win win. The government was already on the hook for the losses, so why not cut out a layer of bureacracy and make the loans direct and in turn use the savings to provide more loans for students."

If one were to look at some of the ridiculous taxpayer Grants the Gov gives to schools, why
should anyone be confident they will be any different with the student loan money?

Nice come back BETELG. What happened yesterday was the down payment Obama's promise to" redistribute the wealth". Elections have consequences.

#18 | Posted by paneocon at 2010-03-22 10:13 AM | Reply | Flag:

I'm trying to understand the twisted mind of someone who argues that it's fine for the gov't to manage and administer the gov't guaranteed student loan program as long as the profit goes to banks, but not if the profit goes to fund college for poor kids.

I'm not having much success.

How many more federal employees will it take to oversee this program? And at what cost?

re: my #20 post regarding Paneocon.

The only things I can come up with as an explanation

1. Obama sucks and I hate everything he does no matter what the facts are.

2. I don't care if it benefits the poor, as long as blacks are excluded.

3. Paneocon is simply irredeemably stupid.

How many more federal employees will it take to oversee this program? And at what cost?

#21 | Posted by em385guy at 2010-03-22 10:23 AM | Reply | Flag:

The gov't was already running the program, but they were running the program for banks and you were funding it.

"The gov't was already running the program, but they were running the program for banks and you were funding it."

Again, from my experience, I had to verify balances and payment history if there was a dispute or error on the credit report before signing off on the loan. I at least had an entity I could call to discuss and correct the errors. If anyone has ever had a tax lien and wanted to get it removed, dealing with the Gov is a nightmare and time consuming. If the Gov is now who people have to deal with, good luck you are going to need it if there is a problem or error.

I'm trying to understand why people want to create anything that is too big for its own good. We just got our financial butts handed to us by banks and investment houses that were too big to fail. We just bailed out/nationalized auto companies that were too big to fail. We are now creating a government that is in control of too many aspects of our lives.
The reason these loans are in the health care bill is that the profits will be used to offset the costs of health care. There will be no lowering of loan rates and if health care funding doesn't go the way they say it will rates may go up significantly.
As a business man I can tell you that you have two ways to stay in business, you can be profitable, in government terms that would mean no deficits. Or you can grow you business at a rate that exceeds you cost of operations, this means funding the business from increased cash flow, Bernie Madoff had this one down its called a pyramid scam.

Right now if you have a problem with you student loans you go to another bank. After this bill is signed you will go to the government PERIOD

Nonpartisan congressional budget analysts project that the measure would save about $61 billion over 10 years. Savings would go increased federal grants to the neediest students as well as to other education programs, including funding of community and historically black colleges.
* * * *

The 'savings' are set to go to the HC debacle--not back to the students.

This falls right in line with the "Second Bill of Rights" if you want to see what they will do next:

-A job with a living wage
-Freedom from unfair competition and monopolies
-A home
-Medical care
-Education
-Recreation

Democrat - Ask your doctor about Democrat today

WARNING: Democrat may cause impotence, retardation, rectal bleeding, nausea, heartburn, explosive diarrhea, death. If you are an American, you should not take Democrat. Consult your doctor to see how bad Democrat could damage your family today.

Its not about the loan.......

Its about the ability for loan forgiveness, work for the government, and get your loan forgiven. Didn't you listen to the State of the Union.

But in the end this becomes a mechanism for oppression. Do the right research and get a loan, do the wrong research, wait in line.... it will happen just wait....

One thing the libbies miss, is that when banks make the loan, the money is created virtually out of thin air, and the cost to the government is zero, unless the loan is defaulted upon. The government levies taxes on the profits from the bank, and everyone makes some money.

If the government lends the money directly, it cannot be created; it must be borrowed from the capital markets. A big flaw in the liberals' thinking here is that heretofore, student loans were simply on created, "free" dollars. Now, students will be at the mercy of what the 30-year Treasury bond pays in the capital markets, and the borrowing capacity of the government itself.

What could go wrong? A lot.

#30 | Posted by rightisright

B..b..b..b-but, we needed those profits in order to steal this shit and tack it on to a non-related bill for the sole purpose of attempting to make said bill appear to be budget-neutral according to the assumptions that the CBO is required to incorporate into their scoring.

Sincerely,

Nullifidian

PS - this is all for the "greater good" - the term being completely subject to MY definitions, of course.

The "profits" didn't come from the Federal government, bestowed on banks. They came from the creation of money. Without getting so involved that Ray comes along, banks are allowed to create money. The federal government cannot. So if the federal government takes over student loans, it'll have to be from additional borrowing. More deficits, not less. More borrowing from China, not less. More crowding out of the capital markets, not less. Higher interest rates, not lower.

And so on. Obama doesn't even understand basic banking.

OMG! The poor bankers are losing their free subsidies from the government and those evil Democratic Communistas are going to use that money to educate poor folks!!! Doesn't anyone care about bankers any more????

The GOPpers do, they want the banks to get their cut.

re: Without getting so involved that Ray comes along, banks are allowed to create money. The federal government cannot. So if the federal government takes over student loans, it'll have to be from additional borrowing. More deficits, not less. More borrowing from China, not less. More crowding out of the capital markets, not less. Higher interest rates, not lower.

And so on. Obama doesn't even understand basic banking.

Posted by rightisright at 2010-03-22 12:35 PM

This requires a thoughtful response.

You are a fucking idiot and have no idea what you are talking about.

Very correct #32 | Posted by rightisright

Boyd doesn't know it either.

Ever wonder why some kids' student loans have lower rates than 30-year mortgages? Or even below the government 10-year? It's because it's with fractional money.

Still, Obama knows best. Everyone sing along!

government's role in lending would increase -- creating billions of dollars in projected savings that would go largely in grants to needy students.

Would that cover the loans that arn't paid off?

The fact is that there would be less lending, not more. Once you've been able to politicize student loan lending, and brought it under pay-go rules, there will be a lot less money to lend.

And that suits me. I despise Sallie Mae, and in one stroke, Obama has put it out of existence. They just don't know it yet.

And tuition will continue to climb because no one is cost-conscious because it's not their money paying for the increasingly worthless college degrees....

"A careful read of this article should make anyone but the most marxis of libs loose sleep at night."

I sleep fine, it's the Republicans who supported Bush's tax cuts, his wars and his Medicare drug bill who seem to be suffering from insomnia.

Again, I am pleading ignorance, but what was the criteria and how were students selected to receive loans? Was it based on income? Was everyone who applied automatically granted loans?

The cost of college has gone through the roof, to the point where it doesn't pay for most kids. Graduates are coming out as indentured servants.
It was government lending that drove up housing prices. It was government lending that drove up college costs. What goes up must come down.

This is about government control. Charlie Rangle said it best when he said Barak is a socialist. What do you think he's going to do?

So now we go back in time to when people didn't pay their student loans...even those with the means?

it's the Republicans who supported Bush's tax cuts, his wars and his Medicare drug bill who seem to be suffering from insomnia.

Don't you mean amnesia, Danni? They seem to have forgotten Bush's September 2008 bank bailout already, how can you expect them to remember 2002 and 2003?

Don't you mean amnesia, Danni?

LOL

only proves people are ignoring her.

they arent revamping anything...they are taking it over and Im sure libs here dont give a fuck about it but talk to me when someone from dc tells you that you arent worth the money to have your kid go where you might want them to.
WONT HAPPEN?
how in the fuck do you know it wont?

Again, I am pleading ignorance.

#16 | Posted by crispee_oc at 2010-03-22 10:08 AM | Reply | Flag: Flag: (Choose)
FunnyNewsworthyOffensiveAbusiv
e

You're a natural at it.

they are taking it over and Im sure libs here dont give a fuck about it but talk to me when BLAH, BLAH, BLAHH

#47 | Posted by afkabl2 at 2010-03-22 08:34 PM | Reply | Flag: Flag: (Choose)
FunnyNewsworthyOffensiveAbusiv
e

You're real amusing there dick. Check this out BL2.

You're utterly ok with a fully funded war built on lies, half truths, and treason where we made Hallicheney wealthy as Santa-fuckin-clause. BUT you aint got time to listen to a program that might actully give some extra people and education.

Question: should the government take over veterans affairs???

seems the guys RUMMY, Dickless et al sent to war could use some help with their wounds...

You're just a real winner aren't you..

are you one of the fucksticks calling themselves a "libertarian" these days??? scratched the "W" sticker off they ole SUV yet?

PANE #3

Excellent.

JM

WOW all the name calling. Seems to me that I notice more libs doing the name caling. I wonder why that is?

"WE WANT THE GOVERNMENT TO LOAN MONEY TO BANKS, WHO THEN JACK UP THE PRICE AND GOUGE STUDENTS!!! WE WANT WASTE!! WE WANT WASTE!!"

- The Right Wing of America

we dont want some lying goddamn democrat to tell us anything..

and somewhere someone needs to find out more about some of this that I heard the tailend of yesterday
something about money from THIS being used to subsidize the lazy motherfuckers who will be GIVEN health care from the successfull workers..
would it be interest from those loans...anyone else heard anything about that...