Letter from Fred Loew

Taxpayers face another bailout; this time it’s the student loan program. Obama nationalized the student loan industry in early 2012. Loan repayment requirements were eased to 10% of discretionary income for 20 years from 15% for 25 years. The result is that many students will never fully repay their loans.

Students and Colleges share the blame for this failure. Students failed to select a marketable curriculum. Colleges failed to provide programs that prepare the student for the workforce.

Again, the tax payer is on the hook. Outstanding student loans rose by $42 billion in Q3-2012 to $956 billion. This is expected to exceed $1 trillion by January 2013. The government has failed miserably on yet another program.

Can we expect reforms in programs like this? The answer is a resounding no!

The recent election had a majority of the voters voting for more of the same.