Trump To Rewrite Obama Rules On Student Loan Foregiveness
by Tyler Durden
ZeroHedge.com
Jun 14, 2017
A few months ago we noted that 31% of college students in the U.S., or roughly 2.4 million kids, literally admitted to using student loan money to fund their binge drinking trips to Cancun and Daytona Beach for spring break. Now, while most of us who’ve had the opportunity to live in the real world, outside the comfort of mom and dad’s basement, would consider it a bad idea to borrow 10-20 year debt to take a vacation we couldn’t afford, many college students seem to think it’s a perfectly acceptable practice.
Now, to be clear, we have no problem with making bad decisions, sometimes those are the most fun (see pic below for evidence). We only ask that the people who make the bad decisions are also the same people who get to deal with the consequences of those bad decisions.
Unfortunately, in the Obama administration the lines between victim and perpetrator were often blurred to be point of being interchangeable. So, while we may say that a college student who borrows money to binge drink is a moron (best case) or a criminal guilty of loan fraud (worst case), Obama would describe that same person as a victim of predatory student lending practices who had no idea that his/her 2.1 GPA in Anthropology from the University of Phoenix wouldn’t automatically guarantee him/her to a ‘career’ making $200,000 a year immediately upon completion of their 7-year Bachelor of Art degree….call it a po-tay-to, po-tah-to sort of conundrum.
Of course, faced with such a conundrum, the Obama administration did what any self-respecting liberal politician would do: it drafted new, confusing regulations to punish for-profit schools and basically made taxpayers backstop the ill-informed financial decisions of their students. The Washington Post described the resulting regulations as follows:
Under the borrower defense rules, students could have their loans erased if their college misrepresented the quality of its programs or broke a “contractual promise” with its students. The gainful employment rule was designed to ensure that graduates would be able to earn enough money to pay off their student loan debt.
The Rest…HERE
