| The extensive health care legislation that's been in | | | | And what could be the major reason for carrying on |
| the news for a year or longer was voted upon and | | | | with on this wasteful path? The answer is that it will |
| passed a short while ago. The final bill looks as if it will | | | | preserve jobs. In other words they will take income |
| be signed soon. A rather surprising addition to the | | | | from some people just so they can give it to other |
| legislation is that the federal government direct | | | | people. And if a few billion is skimmed from here or |
| student loan program will be substantially expanded. | | | | there along the way, who cares? It is a little like the |
| The direct student loan program has been fought by | | | | military services airplane program that was mentioned |
| student loan organizations ever since this was first | | | | during the budget debate last year. Some high-priced |
| unveiled in the Clinton administration. These loan | | | | airplane costing billions of dollars is actually being made |
| providers have utilized a small army of lobbyists to | | | | for the military services, but they have publicly |
| influence Congress to cut the government out of | | | | reported that they've got no mission for the airplane |
| making student loans direct to college students and | | | | and really do not want it. They've asked for the |
| require these types of loans to go through the loan | | | | program to be ended since it takes away resources |
| corporations. | | | | that can be utilized efficiently in other places. So what |
| It has been definitively confirmed that the costs for | | | | do our congressional leaders do? They keep |
| the government are much lower if education loans | | | | constructing these useless planes for the reason that |
| are made directly to college students. The difference | | | | it will save "jobs". A job that isn't producing anything |
| is substantial, and this is part of the explanation these | | | | of use and that exists only because congress is |
| two seemingly disparate measures have been put | | | | extorting money from taxpayers isn't a real job. It is |
| together. That is, as a way to pay for the health | | | | a government giveaway package. It benefits |
| care bill, a savings of around $60 billion U.S. is actually | | | | absolutely no one but the individual receiving the |
| projected for cutting out the student loan | | | | income and the member of congress whose district |
| corporations. Put simply, the federal authorities have | | | | or perhaps state the airplane manufacturing plant |
| been giving away billions of dollars to education loan | | | | exists in, because the people who are the recipients |
| firms over the years. Most of the leading executives | | | | of these bogus salaries keep voting for him or her. |
| in these kinds of companies have consequently | | | | And so in any case the direct student loan program |
| become rich. What many of us are unmindful of is | | | | will certainly grow dramatically shortly, and the |
| that these corporations are actually preying upon lots | | | | student loan providers will certainly hire more |
| of student borrowers in order to get their hands on | | | | lobbyists to once again try to have it reversed as |
| this income. | | | | they have done previously. In the meantime some |
| A person might ask, if the authorities could save | | | | student loan borrowers will avoid becoming captives |
| taxpayers billions of dollars on wasted spending, | | | | of the student loan firms and will not end up being |
| precisely why wouldn't they do this on basic principle? | | | | preyed upon. However, there are countless |
| Why does this legislation have to be attached to the | | | | ex-borrowers who've gotten into financial difficulties |
| health care legislation in order to realize these cost | | | | and who will continue to be in the clutches of the |
| savings? The answer is that the lobbyists talked | | | | student loan firms with absolutely no way out of the |
| about before who have been engaged by the | | | | huge penalties and charges they impose. An example |
| education loan firms have been extremely effective. | | | | is the 41 year old doctor who was in the news |
| It seems that simply by providing a small campaign | | | | recently. She borrowed $250,000 to finance medical |
| contribution to our elected officials, in many instances | | | | school and today owes $555,000 in student debt, |
| Republicans, and throwing in a few minor incentives | | | | penalties and interest despite having made payments |
| like excursions to exotic destinations or maybe a job | | | | for some years. She has high monthly loan |
| for a family member, the Congress will bend to | | | | installments, but she will be about seventy years old |
| wishes of the student loan corporations. They'll allow | | | | before her liability is paid off. The direct loan law has |
| tens of billions of dollars to be steered from U.S. | | | | unfortunately arrived a bit too late for her. |
| taxpayers and merely handed to these corporations. | | | | |