Pay as you go, and avoid debt.
Easing loan requirements and thus allowing people who didn't qualify under
traditional standards was exactly what led to the capitulation of the housing
industry last decade and why so many people ended up going bankrupt and walking
away from their housing loans. That in turn contributed to the housing market
bubble to burst.This action will allow more students to get student
loans. But it will also lead to a higher delinquency rate and a higher
percentage of unpaid student loans. It will go from it's
current bad to even worse... especially considering that such a high percentage
of recent college graduates aren't able to find meaningful employment.
Paying back student loans for those people would be a very low priority... and
especially for those who already merited bad credit ratings.
Other headlines cry out that the student debt load is the next big problem on
the horizon, and BO’s misadministration is wanting to INCREASE it? He
wants to further burden people who have already shown they cannot handle debt
with even more? This makes no sense.10-15 years ago barney frank
pushed lower credit standards and fannie and freddie, and that proved to be one
for the main factors creating the housing bubble that crippled our economy and
BO wants to do it with student debt? incredible!