Obamacare and the Student Loan Bill
Over on the home page, reporter Stephen Spruiell has a good piece detailing the contortions Nancy Pelosi is going through (or making others go through) to make it seem as though Obamacare is “deficit neutral.” Passing the bill to federalize student loans is touted as a means of saving money to help pay for the spending lollapalooza of Obamacare.
Spruiell writes that the saving estimates are bogus and could disappear entirely if student-loan default rates should spike. I think that’s a good bet. If Obama succeeds in getting still more young Americans into college (remember that he wants a big increase so we can say “We’re #1!” with regard to college graduation rates by 2020), that will necessarily mean scraping the bottom of the barrel still further. That is, about the only significant numbers of students who aren’t going to college now are those who are very weak academically. Those are people who will benefit the least from college — they struggle with basic, grade-school reading, writing and math — and who will find it hardest to get good employment in a labor market already saturated with college grads.