Forget Bailing Out Builders, Bail Out The Student Loan Holder
November 24, 2008 / 9:45 am • By Dr. Melissa ClouthierI have an idea for the bailouts: forget the big companies, bailout the taxpayer, specifically, bailout the student loan holder. Hear me out. This is a good idea.
People with student loans went to college. Most likely, they’re working–working their butts off to pay for student loans. These are people who buy homes, invest in the stock market, have families. These are just the sort of people the government wants to have more disposable income.
This one action alone would pour money back into the economy and have the added benefit of disproportionately helping minorities, who tend to get lower paying, public-sector jobs after graduation.Most of all, it puts money into the hands of taxpayers.
I doubt this idea will happen, though. There are kids in school right now. What about them? This remedy does nothing to help those who make less money, often because they have less education. However, those people tend to be paying less federal income tax. You have to make money to pay taxes.
Student loans are killing the economy. The car makers want to sell cars? The bankers want good risks? The home builders want people buying houses? Save the student loan holder. There are lots of things they could do with their money, if it weren’t all going toward paying their loans.
P.S. Do you know what sector has doubled inflation over the last ten years? That’s right. Education. Education costs have soared. Do you know why? The government. I’ve written about this before, but subsidized loans to a certain level gives schools the freedom to up their tuition and costs to the level of the Federal student loan limits. This causes inflation. Higher education is big business. Students this year get a break, but next year will be worse. It needs to stop. Make student loans illegal and all of a sudden education gets affordable. A lot of professors would get fired, though.
Cross-posted at Right Wing News and The Houston Chronicle
6 Responses to “Forget Bailing Out Builders, Bail Out The Student Loan Holder”
November 24 2008 / 11:42 am
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Oh, sure. Now that I’ve finally paid off all my student loans in full? And my wife is down to less than a year of payments?
November 24 2008 / 2:38 pm
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Correct me if I’m wrong, but heard the estimated number of home foreclosures is about 1,000,000 households. If the average price of these foreclosed homes is about $200,000, then couldn’t the government buy every single one of these homes for about $200 billion?
But the government isn’t actually doing any of that, and bailout burden somehow costs $700 billion? Or two trillion, or whatever the hell it is?
November 25 2008 / 1:34 am
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Forget the insurance giants. Forget the car companies. Forget the banks, the lending institutions, forget all that. Just bail me out, ok? I’m supporting my twin sons who are in college plus my wife plus one of my sons is married and is also in college and is living here too. The washer is making funny noise. The garbage grinder is on the fritz. My wife’s car is 14 years old and needs to have the engine rebuilt.The lawn needs to be resodded. Pretty soon we’ll need a new hot water heater and I want to put in a Renni hot water heater. Plus I have a really big dog who likes to eat. And bark when he wants more to eat. I need some help. A bailout. Not a big one, just a ripple in the pond of bailouts. How bout it Mr. Obama.
December 14 2008 / 5:45 pm
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This is an Idea that we are trying to run with.
I think all the reasons that you have outlined are amazing and have real merit.
We have starting to organize this we are putting together a website and we have a facebook group.
http://www.facebook.com/group.php?gid=39112751148
Thanks for the article
January 8 2009 / 8:09 pm
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October 11 2009 / 12:32 pm
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I agree with all you loets get this rexolved and help all the students out there.