I do agree somewhat with President Obama on the student loan issue: Between the government, banks, and students, there are one too many groups involved in the student loan process.
I know it’s not politically correct to say, but it is too easy to get student loans. Money passing from the government to colleges with an understanding that some student, with no real understanding of the amount of money they are dealing with, will pay it back in the future is part of the reason that tuition inflates at a rate 1.5-2 times higher than inflation. (And it’s not like they are getting much out of the extra tuition.) The easy money perverts the demand side of the supply-and-demand curve.
The federal government should not be guaranteeing these loans. Not only do they not really have any business doing it under the constitution, but in the long run, it is actually harming the very students it is purporting to help.
It’s not like banks weren’t willing to make unsecured loans to college students in the past.
So you only get a loan for half your tuition; so you have to go to UW-Oshkosh instead of a private college. It’s better than getting saddled with the cost of the scam the colleges are running on the students with the help of the federal government.
The worst part of the situation is that there isn’t really a private alternative. I just went through the process of funding my law school education. I had two choices: Pay cash myself, or run through the fed’s gauntlet. Believe it or not, I’d have rather dealt with Bank of America directly.