What self-respecting parent would give their kid a credit card if they knew they were going to max it out and not be able to pay it back? Hopefully, no one. In fact, as a responsible parent you would probably teach your children the opposite habit--responsibility.
This paternal irresponsibility is what is occurring on a larger scale with the federal government and the student loan industry. President Obama has earned himself a failing grade in responsible parenting.
FICO released a new study that analyzed 10 million credit files to find trends within the student loan industry. The group concluded that the student loan industry is on an unsustainable path (but I think we knew that already).
Student loan debt has exploded under this President. This past year, student loan debt soared above $1 trillion, surpassing credit card debt--$782 billion--by more than $200 billion. Under President Obama, average graduating student loan debt is up 16%.
There are two main reasons for these spikes: 1. President Obama has tricked young Americans into believing that college is required in order to find a good job, and 2. Higher education fat cats are milking the endless amounts of federal money coming in by jacking up tuition prices.
Pressuring young Americans to attend college has been President Obama’s agenda from the beginning. In his 2009 State of the Union Address, he said:
“I ask every American to commit to at least one year or more of higher education or career training. This can be community college or a four-year school; vocational training or an apprenticeship. But every American will need to get more than a high school diploma. And dropping out of high school is no longer an option. It's not just quitting on yourself, it's quitting on your country. That's why we will provide the support necessary for all young Americans to complete college and meet a new goal: By 2020, America will once again have the highest proportion of college graduates in the world.”
And they’re on the verge of reaching that goal, but the results are anything but stellar.
Since the President took office and nationalized the student loan industry, college enrollment has increased 15 percent. While this may look great on paper, many students and post-graduates are living in the hell of unintended consequences--and they can’t be ignored.