Bill Clinton

Student Loan Deja Vu

Student loan schemes originally proposed by the Clinton administration have proven as ruinous as expected once adopted by the Obama administration

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Exactly 20 years ago, in reason's May 1995 issue, John Hood described then-President Bill Clinton's plans to revamp student aid, which included a proposal that the federal government take over the role of lender: "The selling point of Clinton's direct-lending scheme, passed as a pilot program last year, is that it would eliminate the private middlemen and have the Education Department issue loans directly to students. The administration claims this will save the government billions of dollars a year, but we won't be able to gauge that for another six to eight years, when the loans start to come due. Without waiting for the results of this experiment, Clinton wants to increase dramatically the number of loans directly issued by Washington."

Clinton's dreams of direct lending were thwarted by the infamous Republican-dominated 104th Congress, which passed legislation limiting the measure in 1994. But President Barack Obama finished what Clinton started with the Health Care and Education Reconciliation Act of 2010, and as of that year all new loan originations come from Washington.

While it's true that the measure has saved some administrative costs, the move has done nothing to address the exploding price of college education. In fact, it is likely to make an already terrifying trend worse as colleges inflate their rates to milk the feds for all they're worth.

Now, with over $1 trillion in overall education debt hanging over the heads of American graduates, Obama is looking to revive another element of Clinton's dream. Obama's 2016 budget contains a debt forgiveness measure. But buried in the February proposal is this bombshell: The student loan program will rack up an impressive $21.8 billion shortfall in a single year. Politico's Michael Grunwald called it "a big quasi-bailout, increasing the deficit nearly 5 percent." Obama also debuted another expensive proposal in February, a plan to make community college free for many Americans.

In his 1995 article, Hood made a prediction: "Clinton's policies, if enacted, will actually make it easier for colleges and universities to charge students more and more for tuition and other costs." He was right: The College Board puts annual tuition, fee, and room and board for the 1989-90 school year at $24,622 for private four-year colleges and $9,417 for public schools (in 2014 dollars). Those figures have nearly doubled since then, to an average cost of $42,419 for private and $18,943 for public schools.

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  1. Nice! This will accelerate my timetable for purchasing a nice little pied-?-terre for my wife and I to stay at when we visit family in Bangkok by at least 5 years.

    I encourage all reading this to consider going back to school to advance their careers and/or pursue their passions.

    1. HM,

      Can you email me through my handle? I was hoping to send an email out to everyone to see if a Reasonoid meet up would be possible in the next few weeks.

      1. HM, I’ve met T&T. It’s not a trap.

          1. Shhh HM has to think the other emails on the meet up list are legit

          2. Well, if he’s a trap. I’ll note that I’m only on my 1st drink of the day. Being a rum day, it will take at least 4 or 5 in an hour for something to happen.

            1. Rum day, eh? I might have to adopt that custom in my household.

              1. Just remember that Sunday is Rumday.

                1. That’s gonna be hard to remember, and very likely to result in false positives.

                2. The other six are sodomy and the lash days.

      2. Did you get Zeb’s contact info?

        1. No but DEG I think has it.

          1. Sorry, I actually do have Zeb’s contact info. I sent it to you.

        1. Cool, got it

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  2. I have to believe the few Democrats that are still tethered to reality find the student loan apocalypse to be a feature not a bug. Step one, bankrupt the system. Step two, blame Republicans. Step three, declare education a “right”. Step four, remake the system. Step five, profit! For the majority of Democrats out of touch with reality, but fully in touch with their feelz, this whole problem can be solved by spending more money to fix an underfunded broken system. If those Rethuglicans just valued education and society as much as we do, all of our problems could be solved! All the calculators and consequences in the world won’t change their minds.

    1. Some are evil, some are stupid. I’m still not sure what the exact ratio is.

      1. There’s an 8% overlap. Don’t forget to take that into account.

      2. If my friends and coworkers are any indication, it appears to be about 10 stupid for every 1 evil.

        1. That sounds about right. I always assume evil, but it turns out to be stupid. The evil ones are often pretty smart.

  3. Obama’s 2016 budget contains a debt forgiveness measure.

    “I’ll have those millennials voting Democrat for the next 200 years.”

    1. +1 Ghost of LBJ

  4. Christian Science Monitor writes an article on Obama’s favorite childhood books, the writer of the piece desperately tries to explain why various books Obama read when he was 11 tell us strange things about his wondrous psychology.

    “Of Mice and Men”

    Talk about making a statement. “Of Mice and Men,” by celebrated writer John Steinbeck, is one of the most banned and challenged books in American libraries, according the American Library Association’s annual list of most challenged books.

    In other words, Obama isn’t afraid of making a statement about freedom of speech.

    Or maybe he just liked the book.

    The books of Dr. Seuss

    Obama said he was and still is a “big Dr. Seuss fan,” which the Washington Post’s Hunter Schwarz called a bold progressive pick.

    That’s because “Seuss was a known leftist and subtly inserted political issues like the environment and race into his books,” Schwarz wrote. “Obama is clearly making a subtle base play here.”

    OR MAYBE HE JUST LIKED THE BOOK

    “The Hobbit” and “The Lord of the Rings”

    “Clearly, this proves Obama lives in a fantasy world,” we imagine some on the political right thinking. Others may interpret it as further evidence that Obama is a literary nerd.

    OR MAYBE HE JUST LIKED THE BOOKS

    1. No one can just “like” something. Politics is the raison d’?tre of humanity. All choices are an expression of our ideology. If you disagree, you are merely suffering from false consciousness.

      THIS IS WHAT THE FRANKFURT SCHOOL ACTUALLY BELIEVES!*

      *Imagine that with a blink tag

    2. On the other hand, it’s just as likely the list of books President Obama shared was compiled by his handlers based on focus group testing.

  5. Today in social signaling: Bill Maher says he owns guns, but isn’t one of those weirdos who like, really love guns or anything.

    Maher told Playboy he has “two guns. They’re for protection. We live in a gun country, even Los Angeles. I’m not expecting anything to happen, but I want to be ready for it. So I have a lot of security measures at my house. If somebody gets into my bedroom, wow, they really did a lot to get there. They got past gates, bodyguards, dogs. If I have to shoot somebody in my bedroom, that was a commando raid on par with the SEALs getting Bin Laden. My gun is my last line of defense.”

    Playboy’s response: “It’s strange to think of you as a gun lover.”

    Maher said, “I do not love my gun. That’s the?problem with these Second Amendment people. They love guns. For them, it’s not just that guns should be available; it’s that they’re seen as awesome. They go into Chipotle with their rifles. They go on dates with their guns. They take selfies with their guns. They teach their kids to kill with them. They give them as gifts. It’s a sickness.”

    Amazing. He substantively agrees with libertarians and conservatives regarding firearm self-defense, but he wants to make sure you know he’s not one of those icky slope-foreheaded rubes in flyover country.

    How gauche.

    1. After reading this I’m thinking about taking a run at Bill Maher. I mean he is basically giving me a double dog dare fo me to come get him, what with those fences, dogs, body guards. I’ll take your little challenge Bill.
      *puts on commando suit, blackens face*

      1. He basically just handed you a blueprint. Bring sausage for the dogs and porn for the bodyguards.

        1. I’m sure Bill is such an insufferable prick that you wouldn’t even need the porn.

          1. Me: “Sup dude? You Bill Maher’s body guard?”
            BG: *sighs* “Yeah.”
            Me: “I’m here to kill him. That cool?”
            BG: “Be my guest. That guy is a total duche bag.”
            *opens door to a camouflaged Florida Man*

            1. Man, you beat me by a minute.

              I’m going for a swim.

          2. *in disinterested voice*

            “No. Stop. I beg you. Leave the man alone.”

            *shrugs, turns back to iphone*

            1. I just put a basket ball hoop in by my pool. It’s increased my pool usage by 00.

              1. 300%?
                The H&R doesn’t like the percent sign. 300 percent.

              2. My kid has one of these:
                http://www.seadooseascooter.co…..lphin.html

                I always take the first 10 minutes. Prima Nocta.

        2. You’re a funny guy Bill*. I like you. That is why I am going to kill you last.

          *Bill Maher is not actually funny.

    2. and in typical prog fashion, he collectivizes those he sees as political opposites. Clearly, no other Second Am person could be motivated by the rationale as Maher, not could any of those people simply like to hunt or shoot or collect guns. No, it’s salivating passion for everyone but Bill. I wonder what he thinks of the First Amendment people.

      1. Not only that, but he shows how unbearably myopic he is. People in cities think it’s weird to take your gun into a restaurant with you, but if you live in a rural area people do that all the time. It’s not odd, it’s just part of the culture when you live in an area where everyone has guns and people like to hunt.

        This is also why I think it’s funny when progressives freak out about people having guns in bars. No matter what the laws are, people in rural areas have been carrying their guns into bars pretty much since the beginning of this country. There has not been a rash of random shootings in these places, so clearly it’s not the kind of danger progressives imagine it to be.

        1. Progressives just don’t want black people to have guns.

    3. I don’t see how thinking guns are awesome is any weirder than thinking cosplaying is awesome or any other hobby is awesome like flying drones.

      Obviously guns pose a greater safety hazard and should be treated with more seriousness than other hobbies but if someone loves guns I take it to mean they really enjoy collecting them and shooting them.

      1. I am pretty sure that only people with small penis’ like guns.

        1. *looks down a penis, hides gold plated .50 desert eagle*

        2. That must be it! ‘Cause I don’t have a penis at all, and I love my guns.

      2. Obviously guns pose a greater safety hazard and should be treated with more seriousness than other hobbies…

        Facts not in evidence. Target shooting and hunting are by far safer than other outdoor activities. There are a couple of sports, like billiards and table tennis, that are about as safe.

        Football? You don’t want to know. http://www.talonsite.com/HowSafeIsShooting.pdf

        But if you mean we take gun safety rules seriously, yeah, there’s that.

        1. Units on that would be nice.

    4. For them, it’s not just that guns should be available; it’s that they’re seen as awesome.

      Yes, Bill, it is awesome that someone who can’t afford gates, bodyguards, and attack dogs can defend themselves effectively with a firearm if his or her life is threatened.

      1. and yet, Bill sees that as a character flaw.

  6. Why was this a separate, “full-page” article? The summary on Hit & Run contained all the relevant information, including the tuition amount increases.

    1. More page clicks.

    1. If you want a vision of the United Nations, imagine Sheldon Richman’s boot stamping on a human face – forever.

      Classic.

    2. I’m sure Richman will condemning this outrageous UN interventionism…

    3. At least Sheldon wears a cool retro Beatles boot that he bought during college and not a military style boot he got fighting in Vietnam. He’s so moral, you don’t even know.

  7. I can’t even conceptualize the damage required to one’s moral compass to believe that a sensationalized IFF distinction error by an actor in which the paucity of such errors would make the U.S. Air Force green with envy would trump the systematic murder of an ethnic group’s men and the systematized war rape and enslavement of its women and children.

  8. Here’s CNN to tell you that if you’ve ever cracked a wry smile at a Thug Life video, you’re more racist than the raciest racist that ever raced.

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  10. We live in a gun country,

    No, we live in a gun world. Human beings pass their knowledge of effective, useful tools without regard to less effective concepts like, say, international borders.

  11. The student loan is the price you pay every month to have a job and professional career and let you avoid the necessity to use UK direct pay day lenders 100 acceptance. It is the rent you pay for your job along with the taxes that are derived from the income you earn. But, I still maintain the student loans should only be given out after the student has had a class with their parents that explains these loans and grants. classes could be given to the Junior and senior classes after school hours. In under 4 hours I think they can explain it well enough so both student and parent understand.

  12. For me it’s hard to understand the necessity to create a student debt in order to create a system for its’ forgiveness. I think that the government needs to think about the other educational system that will allow students have some low prices and affordable education. The existing system doesn’t work well and now we have a result when almost all students need to get helpful payday loans here just to pay for commodities and other everyday necessities. And such loans just create bigger debs that ruin the life of young adults in the beginning of their real financial life.

    1. The reason for this is simple, if you want high quality education, it can’t be free. You get what you pay for, want quality, pay now with payday loans online or take a student loan and pay later – select whatever you like, but THERE IS NO SUCH THING AS FREE EDUCATION!

  13. It seems that loan drama will never end. Students should understand that nothing is free today. If you take money you will have to return more. It is like paying twice as much for the same cash. You have to be either sill or desperate to go for it. A lot of students prefer to study remotely. Even when they have difficulties it is possible to read post about descriptive essay or ask online tutors for advice. Surely they will not have a fancy degree but today your knowledge, skills and flexibility is what matters.

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