Friday, April 24, 2009
I Told You Obama Had to Watch Out for Those Democrats
Um hmm. So we're closing in on Obama's 100th day in office (really I thought it'd been like 4evr) and he's trying to get work done and such. Now I don't agree with all of his policies and he's more conservative than I prefer but I realize it's all strategic. Well some of it's CYA but we at least have a President we can have a conversation with. Ranting and acting a fool in public isn't going to yield the results some think they want.
Now I was very excited to hear about the reforms #44 wants to do regarding guaranteed student loans. It's a starting point as far as I'm concerned. The banks got a bailout, I think students and parents should be able write off a big chunk of the loans they have to take out. Particularly when schools count them as part of the financial aid award. Everyone doesn't want to have to attend community college or find alternate resources when the price of an education has ballooned far past the income growth rate.
That's not the point though. After applying for all manner of scholarships/grants have been exhausted those loan interest rates and processing fees really add up. The banks get the money from the government for free but charge us more than 6%. That's the interest rate for a mortgage by the way (if your credit's good). So let me repeat that. The banks lend money that's already covered by the government from our taxes and then turn around and charge us a high interest rate, thereby making a really nice profit. Somewhere in the billions in fact.
Which when you go back to that bailout the banks got after grossly mismanaging money it's really beyond insulting! So aside from Larry Summer doing his drunken sailor routine we have some Democrats opposing the effort at reform. Senator Ben Nelson is getting a lot of attention but he's not going to be the only one. We already know some of the Republicans will oppose anything and everything just to prove their irrelevance, but I've been warning that if Obama isn't careful trying to appease all the factions it will render him ineffective.