The federal government is currently financing over $1.2 trillion worth of outstanding student loan debt through grants, low-interest loans, and loan guarantees.
The Obama administration recently proposed a new rule which would permit students to sue colleges if they aren’t happy with the results of their education. The proposed rule was posted in the Federal Register to allow for comments by the public, and received over 10,000 comments in favor of the disastrous proposition.
The proposal includes requirements that colleges and universities must provide warnings to students about poor loan repayment rates and setting aside money for loan forgiveness, and it lays out a path for the government to forgive students’ debt if they claim they were defrauded by their institution.
The proposal basically lays out a plan for college students to moan about being bullied by the big, bad, “for-profit” institutions – which are designed to run like a business – and not a center for handouts. It’s the perfect plan to gain complete government control over the minds of U.S. children and kill off the competition.
The U.S. Department of Education is set to release the final set of regulations on Nov. 1, and according to the department’s own estimates, the new regulation could lead to the discharge of $42 billion over the coming decade.
Public and private educational institutions commented about the plan in the Federal Register, including Clark Atlanta University President Ronald A. Johnson, who wrote:
The proposed definition would include erroneous statements made inadvertently and innocently and, thus, would unnecessarily expose my institution to frivolous and unfounded claims for loan forgiveness, generating potentially significant financial liabilities.
In a litigious society, the concern is always that innocent action will face remuneration, leading to devastating consequences.
A perfect example of this was when ITT Technical Institute was recently forced to close its doors, leaving thousands of students without a place to go for their education. The government suddenly decided, that since the institution was profiting with money from the federal student loan program, it should pay a huge deathblow-sized fine – no matter the consequences to the children.
Never mind the fact that government-run colleges also profit from federal student loans which eventually make their way to paying the exorbitant salaries of the administrators of those colleges.
Hillary Clinton supports a Student Loan Forgiveness plan of her own which would allocate roughly $115 billion to student loan forgiveness and would provide potential benefits to over 60% of individuals with student loans (25 million borrowers).
This $115 billion is a third of her proposed $350 billion “New College Compact”. In total, the plan could save student loan borrowers billions of dollars every year.
Clinton already made a deal with Bernie Sanders to add a plank from the Socialist Party USA platform to the Democratic Party platform to provide everyone a “free” education. Of course, Clinton’s supporters are hinting taxpayers should foot the bill for the handouts to small, private colleges so they don’t go belly-up with her “free” education scheme.
Between the expensive “free” education plans, the bailouts for Clinton’s friends in the education system, her Student Loan Forgiveness plan, the Common Core fiasco, and now Obama’s disastrous proposal to allow students to bring lawsuits against private institutions, education in America would be but a remnant of its intended purpose – to give children the education they so richly deserve.