The Federal Direct Loan Program Fraud

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The Dollars in Academia

as seen in

The Chronicle of Higher Education

where the pictures are

as good as the articlesYour Business Blogger married into a gaggle of academics. The Little Woman taught at UVA, her folks taught at SUNY Buffalo, brother-in-law is currently teaching rocket scientists at Auburn.

And we subscribe to The Chronicle of Higher Education for the (intellectual ! ) stimulation. (Click here for edukated nekked Kronicle ko-eds.)

Alert Readers will remember that we invested some 10 years and countless dollars in opportunity costs for Charmaine’s Ph.D.. So we’ve seen the academy from the inside and it is not always as pretty as the young lady pictured at left.

John Lott, Ph.D., author of Freedomnomicis, recently told me that that the higher education tenure system is all but eliminating conservatives from campus. Leaving only the commies. (Excepting, of course, brother-in-law who may have been an EEO hire.)

The only thing worse than giving those Marxists America’s students to corrupt, is to give the Marxists money. And the only thing worse than giving the Marxists money is to have the government administer the money.

The government program which handles student loans is, surprise! going broke.

The inefficient Federal Direct Loan Program, where the government lends money directly to college students, lost nearly $15 billion. Billion, with a B.

Democrats in Congress have a plan. A big government plan.

Which will fix nothing — 600 colleges and universities have dropped out of the Federal Direct Loan Program because of poor state sponsored terrorism customer service.

The private sector is the best vector to handle the machinery of student loans. We, the taxpayers, have spent $15 Billion to prove that the government cannot do school loans.

The private market is better.

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2 Responses

  1. david says:

    I am no fan of the direct program, far from it but how do you come up with 15 billion? Source please.

  2. Jack says:

    David,

    “In 1990 the Higher Education Assistance Foundation (HEAF), then the nation’s

    largest guarantor of student loans, faced the prospect that it could not make good

    on its obligations. The company guaranteed about $ 9.6 billion in federal student

    loans; some $ 15 billion of those loans had defaulted in the previous two years”

    see:

    http://www.aei.org/docLib/20070515_TSTANTONSM.pdf

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