Congratulations. We're about to own $100 billion a year in student loans!

[Freedom4all]

Lets see, we now have...

Medicare...broke
Social Security...broke
FHA Mortgage Monopoly...about to implode
Stimulus...Failure
Cash for Clunkers...Failure

So lets take over the student loan market! Whoohoo!!!!

The Quietest Trillion

The furor over President Obama's trillion-dollar restructuring of American health care has left his other trillion-dollar plan starved for attention. That's how much the federal balance sheet will expand over the next decade if Mr. Obama can convince Congress to approve his pending takeover of the student-loan market.

The Obama plan calls for the U.S. Department of Education to move from its current 20% share of the student-loan origination market to 80% on July 1, 2010, when private lenders will be barred from making government-guaranteed loans. The remaining 20% of the market that is now completely private will likely shrink further as lenders try to comply with regulations Congress created last year. Starting next summer, taxpayers will have to put up roughly $100 billion per year to lend to students.

 

[tech2101]

So lets take over the student loan market! Whoohoo!!!!

This opinion piece from the WSJ is just that:

I will post what you conveniently left out:

For decades, loans carrying a federal guarantee have been the most common way of borrowing for college. After raising money in the private capital markets, lenders made the loans, paying a fee to the government for each one. The government covered most of the cost of defaults while allowing the private lenders to make a regulated return.

So now the government will continue to cover the defaults while allowing the private lenders to make no return.

I wonder why they are upset?