I’m sure you’ve all heard this before, but higher educational cost
have reached the point of no return, and once again it’s the parents who are paying the price. Well, let’s be honest. Any parent who spends hundreds of thousands of dollars to send their children to what has become socialist indoctrination centers, deserves what they get. Harsh, perhaps but honest. When these bills come due, economic chaos is going to result. The crisis I’m talking about is the Parent Plus Loans coming crisis.
Millions of American parents have taken out loans from the government to help their kids pay for college. Now a crushing bill is coming due.
Hundreds of thousands have tumbled into delinquency and default. In the process, many have delayed retirement, put off health expenses and lost portions of Social Security checks and tax refunds to their lender, the federal government.
Student loans made through parents come from an Education Dept. program called Parent Plus, which has loans outstanding to more than three million Americans. The problem is the government asks almost nothing about it borrowers’ incomes, existing debts, saving, credit scores or ability to repay. Then it extends loans that are nearly impossible to extinguish in bankruptcy if borrowers fall on hard times.
As of Sept. 2015, more than 330,000 people, or 11% of borrowers, had gone at least a year without making a payment on a Parent Plus loan, according to the Government Accountability Office. That exceeds the default rate on U.S. mortgages at the peak of the housing crisis. More recent Ed. Dept. data shows another 180,000 of the loans were at least a month delinquent as of May 2016.
“This credit is being extended on terms that specifically, willfully ignore their ability to repay,” says Toby Merrill of Harvard Law School’s Legal Services Center. “You can’t avoid that we’re targeting high-cost, high-dollar-amount loans to people who we know can’t afford to repay them.”
The free market loans money wisely, based o the principle of profit. Both lender and borrower benefit. Big Gov. lends money foolishly, based on moon battery. Both lender (that’s us) and borrower get taken to the woodshed.
At least with the mortgage fiasco, they could say we all need a place to live. How many people need to spend increasingly extravagant sums to acquire a college education is highly debatable.
What makes this even more tragically pathetic is that these folks will be losing everything they have to pay back money spent on an education that did little more than teach their kids that they deserve to be given everything they want without question.
They’re paying for safe spaces, mind numbing professors, group think and the total dumbing down of todays young people. I’d like to talk to the students who find their parents in this loan trap to discover if these kids care about the position their family is in because they wanted to have a better life. Many I’m sure think they deserve it. After all, they didn’t tell their folks to take out the loan, the parents volunteered.
Another angle on this is the cost of questionable higher education. Why do people put up with it. College tuition and salaries are constantly going up without any restrictions. Professors who do virtually no teaching are getting highly paid simply because of tenure.
Also people are willing to pay to be able to say their little brats are going to Harvard or some other institutional soul destroyer. That’s on us. If we stopped sending our kids, tuitions would drop like a rock. No kids, no money. We boycott everything else, why not our colleges and universities. More on this tomorrow.