Romney Would Return Student Loans to Banks

The tax payers assume all of the risk for student loans, we subsidize the banks to lend the money, and the banks take all of the profit and act only as "middle-men"....Or at least that is how it worked for years until Obama made the tax payers the ones that benefit from the loans and used the additional revenue to fund more Pell Grants.

Just saying some of these things out loud is shocking enough but old Mittens has actually said he'd make them policy. If any RW'er can tell me how this benefits students and working class families, I'd love to hear how. Unreal! If you have ever been fooled into the belief that the Republi-CONS actually care about anyone but the wealthy, how do you reconcile this little policy?


Romney’s Higher Education Plan: A Giveaway To The Wall Street Banks And Predatory Schools That Fund His Campaign

By Pat Garofalo on May 24, 2012 at 10:21 am


2012 presumptive presidential nominee Mitt Romney released his higher education plan Wednesday, decrying the nation’s “education crisis.” During a speech before the U.S. Chamber of Commerce, Romney blamed President Obama for rising tuition prices and increasing student debt.

Of course, tuition increases and growing debt are a phenomenon several decades in the making. And Romney’s plan would make the problem decidedly worse in two important ways, giving federal money away to Wall Street banks and predatory for-profit colleges, two industries to which Romney has extensive ties.

First, as he’s promised before, Romney intends to divert money away from student aid — instead giving it away to banks — by repealing Obama’s student loan reforms:


Reverse President Obama’s “nationalization” of the student loan market and welcome private sector participation in providing information, financing, and the education itself.

President Obama did not nationalize the student loan market. (Plenty of banks still make private sector student loans.) Instead, Obama and the Democrats cut private banks out of the federal student loan program, ending billions in subsidies that were needlessly going to banks for acting as loan middlemen. The money saved went into the Pell Grant program. Romney’s plan would entail taking away Pell money in order to pay Wall Street to service federal loans.

Second, Romney would remove regulations meant to protect students from predatory for-profit colleges:

http://thinkprogress.org/education/2012/05/24/489674/romney-higher-education-wall-street/

 

You just want the government to control everything don't you

 

Some people have a vested interest in the student loan industry.
These snake oil salesmen need the gov't subsidizing student loans so that they can continue to sell their product without being overly concerned with the ever-increasing cost (and quality) of that product.