Saturday, March 8, 2014

CURMUDGUCATION: College Loan Sharks

CURMUDGUCATION: College Loan Sharks:



College Loan Sharks


President Obama is stumping for FAFSA again, the ubiquitous all-purpose college loan/family finances proctological exam that is the gateway to college financial aid.

In a White House PR piece about the President's visit to Florida on Friday, Obama is quoted being concerned that we still need to get more students in college. “Unfortunately, there are still a lot of young people all across the country who say the cost of college is holding them back,”he said. There are families worrying about how to find the money. FAFSA is the answer, says the President, as he challenges every single child in America to fill out a FAFSA whether they think they're going to college or not.

It's natural that the big FAFSA push should come this time of year-- it's paperwork time. The theme this year seems to be "money on the table," as in "many students didn't get government loans last year and left a bunch of money on the table. I would personally like to see this table, with its prodigious piles of money. I also can't help wondering if this is the same table that Bill Gates doesn't have a seat at.

But mostly the renewed hard sell on college loans reminds me of this news from last November: that in 2013, the US Government cleared $41.3 billion in profits from student loans. If government student loans were a corporation, it would have been the third most profitable in the world, behind only Exxon and Apple.

So the feds being sad that more students can't afford college is kind of like a used car salesman expressing disappointment that more people can't afford his great cars as he settles into his giant 


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