Every year, Congressional Democrats love to pander to their younger constituents, telling poor, overworked college students that they shouldn’t be burdened with all those nasty student loans. Liberals keep telling voting-aged college students that they shouldn’t be forced to pay back all that debt. After all, the pandering politicians tell them, education should be a right in this country.
This week, we got a better idea as to where all that government-issued, student loan money is going.
The student loan news website, LendEDU, conducted a nationwide survey asking students where they were spending their student loan money.
Incredibly, 31% of students admitted that they are funding their Spring Break vacation with these loans. That’s 2.4 million students who will be buying beer and paying for their airfare and hotels in Cancun, Miami, and Las Vegas with government money.
Fully one-third of students say they also use their student loan money for new clothes and eating out, while many others admit to using the money for alcohol, drugs, and gambling.
What caused this crisis? You guessed it – President Obama nationalized the student loan program in 2010, essentially private lenders from the program and having the federal government lend all the money directly to the students.
Investor’s Business Daily points out that government lending skyrocketed after Obama got into office. Since 2008, student loan debt on the federal government’s books is up by 125%.
Making matters worse, Obama dramatically loosened the requirements on paying back students loans. Today, it’s often jokingly called the “Obama Student Loan Forgiveness Program”.
Essentially, you, the taxpayer, will end up paying for much of these hedonistic Spring Break parties.
Today, college students know they can pile up lots of student loan debt with the expectation that taxpayers will bail them out. In their survey, LendEDU found that over half of college students expect their debts to be forgiven at some point in the future.
It’s a recipe for disaster.
And it’s already happening. Delinquency rates on these government subsidized loans are rising quickly and are currently at 11.2%. Today, students owe well over a trillion dollars in student loans, and they are delinquent on over $30 billion. Expect that number to keep rising.
Thanks again, Obama.
Let’s hope this new report is a wake-up call for those fiscally irresponsible liberals like Elizabeth Warren, Bernie Sanders, Maxine Waters, and Nancy Pelosi, who are calling for debt relief for the trillion-dollar student loan program. But don’t count on it.
Should students be forced to pay off their student loans? Sound off in the comments section.