<p>cpt of the house,
Quite astute observations. </p>
<p>The problem is whether the loan model for education should have ever been allowed to have developed. Much of the money which goes into subsidizing these loans, might have been better directed into grants or federal directs. </p>
<p>There’d be those who’d claim that the private sector would be more efficient in that regard. But the infiltration of the USDOE by that same private sector has made it abundantly clear that the private sector largely perceives educational funding as a cash cow. The 250+ million which NNC over billed the US government is just one instance of abuses. And SMC’s 2007 142 Billion dollar loan portfolio was largely backed by public money. And since policy within the USDOE is largely being set by political appointees, many of whom are directly placed from this industry its improbable proper oversight will be enacted. That has had been made very clear by the statement that reform is desperately needed made by the retiring IG for the USDOE. </p>
<p>For example, using just the one example of the 250 million over billing given to NNC by USDOE Secretary Spellings, over the objection of the USDOE IG…that would come to these little amounts of pocket change. 250000000 @ 3,000$ per student=83,333 students who could have been given grants. Or if you’d want to pay for their entire bachelors degree at a cheap state school…250000000@30000$=8,333 students. </p>
<p>Boss Tweed would be envious. And at least with Boss Tweed New York got a few pretty buildings as a unintended consequence of his avarice. </p>
<p>As such, in this feeding frenzy in a polluted pool provided by the US government- its incredibly unlikely policies and regulations favorable to student’s or protecting their rights will be propagated. And disappointing that none of the current candidates for high office have any meaningful policy statements about this incredible problem. Maybe they’re comforted by the warm slime of the pond about their feet? </p>
<p>The sad fact is it is the most vulnerable population of the working class and lower middle class Americans who have to swim with the sharks of this poisoned pond. Because of their declining status they often lack the resources to redirect meaningful portions of family incomes to education, but nonetheless they have been subjected to cutbacks in grant aid and other programs. Or as is indicated in my last posting, programs to help them are simply not run with any intent to do the help for which they were established. But in a globalist economy their employers often expect a college degree. </p>
<p>And students with “proper” EFC’s are often given financial aid packages heavily skewed to loans. Relative amounts of Pell grants have been in sharp decline since the 90’s. And that really hammers the lower class student especially when an average 6% yearly tuition rise (since 2001) is factored into the aid equation. And it can be a lifetime problem as the type of trades which one is often trained for with lower echelon degrees (such as a teachers license, social worker and etc) tend to pay poorly compared to the cost of the loans. </p>
<p>Essentially the appalling redirection of American education policy has benefited no one but the corporate giants who so successfully lobbied, schemed and bought these policies. And if it continues what we will see is a increasingly smaller proportion of our population who can even dare to contemplate higher education. </p>
<p>Second and third world country anyone…?</p>