I don’t feel sorry for the poor because Yale is coming after them for the money they owe. I feel sorry for the poor for ever going to Yale in the first place.
Tuition, fees, room and board total over $55,000 this academic year. Who among you think it’s a good idea to graduate into this economy with a $200,000 anchor around your neck? You’d have to steam a lot of milk to pay off that debt.
Needy U.S. borrowers are defaulting on almost $1 billion in federal student loans earmarked for the poor, leaving schools such as Yale University and the University of Pennsylvania with little choice except to sue their graduates.
The record defaults on federal Perkins loans may jeopardize the prospects of current students since they are part of a revolving fund that colleges give to students who show extraordinary financial hardship.
Yale, Penn and George Washington University have all sued former students over nonpayment, court records show. While no one tracks the number of lawsuits, students defaulted on $964 million in Perkins loans in the year ended June 2011, 20 percent more than five years earlier, government data show. Unlike most student loans — distributed and collected by the federal government — Perkins loans are administered by colleges, which use repayment money to lend to other poor students.
So, when some deadbeat (sorry, “needy borrower”) can’t make the payments, it’s the next generation of deadbeat who suffers. I sense a certain justice in that. As long as you and I aren’t on the hook.
The increase in the amount of defaulted loans among poor students comes as President Barack Obama says he wants to expand access to college for working-class families and increase funding for the Perkins program. Under his proposal, the pot for Perkins loans would increase to $8.5 billion from about $1 billion. The Education Department would service the loans instead of colleges.
I am not here to bash the poor. Judging from his actions, however, President Obama is. His policies do nothing but cripple a robust private sector. In fact, he appears to want to do away with it entirely (as with the loans, above). Why expand a failed program—a program that punishes the poor under the guise of helping them—by 8.5 times?
Because you and I are on the hook for it, that’s why. Same rationale for ObamaCare, for tax rates, for just about everything.
EHC, as Aggie would say: Elections Have Consequences.