Should the US Government be profiting from student loans? Is the government’s job to “make a profit”?
One of the reasons the economy is not in great shape is because students are so in debt trying to pay back student loans. (Let’s leave the discussion about why college costs so much for later). If money is being spent paying back loans, it’s not getting spent on homes, cars, appliances, and goods that help the economy as a whole.
A recent bill would have reduced the student loan percentages to a reasonable amount (but still, ironically, higher than when the government lends money to GM and the banks). It was shot down by Republicans (duh). Why? What possible reason would they be against this? How does this bill do anything but help all students, liberal and conservative alike, from blue states to red states?
Oh, right. It was being paid for by increasing taxes on millionaire and billionaires, and we can’t have that, because they’re the “job creators” who will stimulate the economy. (Remember that? When the Bush tax cuts first went into effect, they were supposed to do that? Remember when that happened? Ha ha! Aren’t we a bunch of chumps!)
So once more the government took the side of the 1%, ignoring 99% of the people they are supposed to be representing.
One of the reasons it failed as well is because of all the lies being spread all over the internet about it. More than once I tried to explain to people who falsely claimed that this was “an Obama loan forgiveness program” that would let students get off without paying anything. “I paid my loans, how can these freeloaders get away with it?” Facts never matter to these people, and of course, only a few would admit that the law did no such thing, but you can guess which news station was promoting that meme, can’t you?