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$1 Trillion Bailout: Student Loans

Written by Gary North on December 3, 2012

There is now a proposal before Congress for the government to pay off all the banks that have lent money to students.

The government has already changed the bankruptcy law to make it almost impossible for students to escape this debt. But the banks still cannot collect the money.

So, it’s Congress to the rescue! Bail out the banks! But do it in the name of helping the poor students, who were so stupid as to take on these debts.

They could have earned their degrees for $15,000 or less. But no! They loaded up on debt. And now they cannot repay. So, Congress is supposed to do it for them.

That means you. That means me.

I don’t think this bill will become law. But it’s a sign of the times. There are always members of Congress who think no one is ever individually responsible for his major mistakes, but the taxpayers are collectively responsible for the losers’ mistakes.

The winners in life owe their wealth to the losers. So, the deficit rises and the Federal debt rises.

Who will bail out Congress in the Great Default?

Continue Reading on www.breitbart.com

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34 thoughts on “$1 Trillion Bailout: Student Loans

  1. Patriot1776 says:

    If Congress wants to rescue the banking industry for the crisis caused by government medling, then what they need to do is reduce taxes, eliminate or restrict the powers of the EPA and all of the other big government alphabet agencies and allow the economy to grow, creating jobs so that the people that fell into the student loan trap can repay their debts. What they don't need is another unfunded stimulus plan from the incompetent government to the banking industry.

  2. Rabelrouser says:

    And it always comes back to the banking industy following legislative orders from the government to push these loans; much like the real estate bubble. What few, if any, American citizens realize is the fact that ALL BANKS are governed by the Federal Reserve; (Federal Regulations Commercial Code) so they are beholding to any dictates to finance by legislation. The Root Problem, again rears its ugly little head.
    Blaming the government is blaming the middle man, nothing more.
    Blaming the governments policies is attacking the symptoms of the problem, nothing more.
    The American citizens are at fault in this mess, again. Because they refuse to look for the real problems; but hey, that does not take effort does it?

  3. You can't have a constitutional republic when the majority of people act this way. 200 years + or -, nice while it lasted.

    • Bob Marshall says:

      Benjamin Franklin understood this when he said the following: ' When people find that they can vote themselves money, that will herald the end of the republic."

  4. Simple solution for the government: quit backing student loans ad the financial instiutions that make them. Let them fail-they deserve to. The end result will be that college costs will go down across the boards. Financial institutions will no longer be willing to loan money to students who want 50K a year to study for degrees that offer no hope of providing the student with enough income to pay back the loan. End result would be fewer art historians, fine art critics, and MSNBC pundits and more scientists, engineers, doctore,and sadly,.more lawyers.

    • True, whenever government gets involved in any field the costs go up. I do know that private vo-tech schools that declined many applicants because they were a poor credit risk, were ordered by the feds to make the bad loans. When the students defaulted all vo-tech schools were smeared as "diploma mills". That's what the feds do: force you to do something contrary to reason and common sense at the point of a gun barrel, then blame you when it goes south.

  5. David in MA says:

    About twenty years ago nobody from the government knocked on my door with an offer to pay of my mortgage and I was making the monthly agreed upon payments, the FHA foreclosed anyhow. So, I ask, why should loans made by stupid people be paid at taxpayers expence?
    obama is buying his dictatorship and America's marxism.

    America, the land of the freebe's and the home of the slaves.

    • Cause you already paid for the banks to be bailed out !!! And now you are too selfish to understand that they did nothing for you !!!

      Forgiveness of student loans would put their payments into the local economy and NOT INTO the banks.

      Please think about the bigger picture instead of the smaller picture that suggests you should pay your debts while the Banks get a free walk. That is exactly the blindness the banks, gov't, Obama, etc are planning on.

      • Patriot1776 says:

        Neither the banks nor the debtors should get a free walk. The government has no money, they ran out some $87 trillion ago. The lesson in bailing out the student loans is that "government will provide, I don't need to live responsibly". This mentality is part of the problem we face as a nation. The reality of obama's bail outs is that the banks get the money, the consumers get the shaft. The home mortgage bail out gave money directly to the banks. People still lost their homes. This will end up the same.

  6. VaqueroBob says:

    It's one thing for these college students (not all graduate) to be unemployed and unable to pay ANY bill… it's quite another when the person is gainfully employed and refuses to pay the note. I understand that the Government can garnish the wages to collect IRS debt and that courts do the same thing with child-support deadbeat moms and dads, so why not employ this method to recover student loan debt??? NO MORE TAXPAYER BAILOUTS!!!

  7. EVERYONE NEEDS TO PAY THEIR DEBTS!
    IF you can not afford debt- and you go ahead, then YOU- PAY!
    SO- ALL OF YOU- who are for paying for the COMPLETE COST OF- ILLEGALS…YOU ALL PAY FOR THAT DEBT- TOO!
    YOU ALL MADE IT- NOT THOSE OF US WHO ARE AGAINST ANYONE FORCING US TO BREAK THE LAWS OF THIS COUNTRY- AND- FORCING US TO PAY FOR THE UPKEEP OF ALL ILLEGALS, AS WELL.
    DO NOT SAY..'THEY PAY FOR ANYTHING'…THAT IS BS!

  8. Bob Marshall says:

    What ever happened to (Neither a debtor nor a lender be.)? The last time our national debt was paid off was by President Andrew Jackson on January 08,1838 and there was no central bank for the next 87 years.

  9. LOL, sourcing Brietbart.com? Gary North once again proves he's a hack.

    Banks ARE collecting on student debt, believe you me. Don't let Gary fool you. The crazy insane interest rates being charged on student debt are crippling the youth of our nation. They don't need to forgive the loans – just drop the interest rates to 1% or less.

    NO STUDENT is asking to NOT pay back their loans. They just want a fair deal, and ridiculous interest rates are not fair.

  10. I think this is GREAT!! I still owe about 9000 bucks and I would love if you good ole boys paid it off. Why not? We saved the banks so now lets save the little people. Nobody in DC gives a damn anymore so let's take our share before it's all gone.

    RISE UP STUDENTS AND DEMAND AN IMMEDIATE PAY OFF!!!

  11. A few years back I ran a non profit thrift store. I had a young man working for me (a minority) Who applied for a school loan of 15,000. I was supportive as I thought that man had potential and would do well to have some extra school. LITTLE DID I KNOW!he had NO INTENTION of ever going . It was an internet course, they not only sent him the money but an inexpensive laptop was also included. The day he got the money he did not show up for work, I watched him over the next ten days act like he had hit the lottery!
    I pulled hm aside and said "your going to run out of money" he already was down to one thousand. That is when he told me he had never intended to start much less try to take the classes. he was as I learned following a lesson taught on the street as to how to get "free money" many of these schools even are aware of this i have found. Apparently there is no one who follows up on if they do any work or not. I say if they do not even try they should be arrested for FRAUD! Also I have found this is done every day and at an alarming rate.

    • Well Brian I ain't one of them. But then again I am not a protected 'minority'

      So please, please do not lump us all into the same category.

      • Many sincere conscientious young people were encouraged to take out loans because they were told by college administrators: "Don't worry! With a college degree there'll be a GREAT job waiting for you when you graduate and you'll be able to pay the money back with interest!"

  12. I find this article offensive. The author writes: "…do it in the name of helping the poor students, who were so stupid as to take on these debts. They could have earned their degrees for $15,000 or less. But no! They loaded up on debt." I have $200,000 debt because this is how much medical schools charge for a 4-year degree! There is no going around to get it cheaper way. I have loans that have 9.25% interest! The average annual income for residents (medical doctors in training) is $45,000. You can calculate yourself how long it will take us to get out of debt in which we are all drowning. Attacking students is really a very poor way of approaching the problem. I suggest you attack the institutions first and foremost!

    • I'm just curious, G22–med students are generally very bright. When you started school on your loan, did you know that this was how things would turn out? If not, why not? I mean, your situation isn't very good, agreed; but couldn't you see it coming? Did this knowledge, if you knew it in advance, have no part in your decision to do med school on borrowed money? I'm not accusing, just wondering..

    • David in MA says:

      You shudda become a pimp, all cash and no W-2's and no loan to repay….

  13. Cause you already paid for the banks to be bailed out !!! And now you are too selfish to understand that they did nothing for you !!!

    Forgiveness of student loans would put their payments into the local economy and NOT INTO the banks.

    Please think about the bigger picture instead of the smaller picture that suggests you should pay your debts while the Banks get a free walk. That is exactly the blindness the banks, gov't, Obama, etc are planning on.

  14. Maybe Congress should give me some money that I had to pay for to earn my way thru college. Whats fair for one is fair for another.

  15. @David- I sure as heck hope you are a smarter Doctor, than consumer. Please post your name and location so I can be sure to steer clear of you. Doc.

  16. Student loan debt should be addressed in bankruptcy like other debts. Unpayable debt should be written off, not perpetuated at taxpayer expense. Oh, but then the big banks might lose some money.

  17. We consolidated 15+yrs ago and loaned $45K. Since then we have paid $65K back. The sad part is that we still owe $53K. Yes, that's $8K more than we consolidated in the first place. I thought loan sharks were illegal.

  18. iswordsman says:

    I dont see why I should have to pay back a loan that sent me to school to become an unemployed liberal retard-o-crat. I think we should form a Union and have a strike against this. We could bust up some cars and tear up property, pretty soon the insurance companies would be on OUR SIDE. fffffffftttt, yeah, thats it….

  19. iswordsman says:

    a lot of these posts show quite well how stupid you can be and still get through college. I didnt get college, I got Vietnam but i always paid my bills. Now you want me to pay yours too… and then you want to talk about what's fair??? libtards

  20. Why is it the students that are so stupid for taking these loans. Why not the parents or the rest of society that sez the only way to make it is college degree. Blame the policies as well i say

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