As a follow up to the recent post on student loans, I refer you to Mish’s commentary entitled Budget Deficit Accounting Fraud and the Off-Balance-Sheet Student Loan Scam; Time to Scrap Entire Student Loan Program. As Mish describes the program:
That debt is government (taxpayer) guaranteed. It is one of the primary things fueling the ever-rising cost of higher education. Amazingly students scream for more aid, and Obama want to give it to them, even though the debt destroys millions of lives in the process.
I propose the entire student loan program be scrapped. Much of that alleged “aid” goes straight to corrupt institutions…
Mish offered the following graph to show the projected growth of this program:
Get ready taxpayers for another bailout. Get ready prospective students for a lifetime of paying off student loans.
This program is what we might term a “two-fer.” It bankrupts students before they start working and then further harms taxpayers.
And, it is just another example of government accounting fraud.
What a country!
