🚀 go-pugleaf

On 21 Nov 1995, David Lynch wrote:

Lets look at this a little closer.

> 
> The sky IS NOT falling--contrary to what the DEMOCRATS want 
> you to beleive.  Under the REPIBLICAN plan, there are cuts made, 
> but they are to BANK PROFITS!  Isn't that GREAT!
> 

For years the banks complained about the student loan situation.  Then 
the government proposed to take it away from them.  The truth is, the 
banks had no risk -- because the loans were GUARANTEED by the government 
-- yet the banks made PROFIT from the loans.  

THis is the ultimate in government waste -- a government HANDOUT, a 
FREEBY, to the banks.

So, ooh, the Republicans will give the loans BACK to the banks, still 
guarantee them, but the banks will have to settle for less of a profit!  

> The banks hold virtually zero risk with student loans because the 
> government guarantees the loans, so why should they make a ton 
> of money?  

Why should they make any?

> You would get in on a deal like this if you saw one.
> 

Sure, and if the government would buy thousand dollar hammers or 
paperclips from me -- I get in on that deal to.

> Why should the GOVERNMENT be the lender? 

Because when the government GUARANTEES loans -- it IS the lender -- the 
difference is, for years they allowed a middle-man to make a profit -- at 
no cost -- and now the government has begun to remove the fat, get rid of 
the middle man, and do it themselves.

> I agree it is nice to 
> fill out less paperwork and get the loan quicker, but reforms can be 
> made under the bank-lending system to make IT better.  The 
> government doesn't need any more debts.
> 

The government is not GAINING any new debts through direct lending -- 
that part of the system is the same.  It is just removing the PROFIT 
motive of guaranteed loans -- that provided NO services to the borrowers 
except improper disbursements, improper defaults, etc. etc. -- And it 
cost the borrower (actually, first the government who guaranteed the loan 
-- for if you remember, when you got your $1000 loan, before they gave 
you the check they took out a couple hundered dollars for a finders fee 
and processing fee! -- and you had to pay interest on that too).

Lets face it -- when the banks "handled" the guaranteed student loans, 
given by the federal governmetn, they were scamming both the students and 
the government.  They were making a bundle for doing nothing and with no 
risk.  It was free income.

Now that a good reform, getting rid of the waste of the middle-man, 
affects somebodies pocket book (because they dont get their government 
check) -- and that somebody is big bank owners -- the Republicans are 
coming to the rescue.

I am not a Republican, nor a Democrat -- but I am sick and tired of 
hearing how everything is the fault of one or the other of them.  Its 
both their faults.  And neither of them is truly attempting to resolve 
the problem of the debt -- they are simply seeking reelection.

> Listen, this is a CAPITALIST society--NOT SOCIALIST. Grow up 
> and earn your keep.  Quit WHINING!  The government is not your 
> mommy.  
> 

Now this is really a winning statement.  Lets face it, Senator McCarthy 
died quite a while back didnt he -- sometime after they let him out of 
the psychiatric ward wasnt it?

So why do people continue this red-baiting type stuff.  It is 
meaningless.  And, where in the Constitution of the United States does it 
say -- this is "a CAPITALIST" society?  I dont recall seeing it there.

Lets get over this nonsense.  Direct lending is neither socialist nor 
anti-capitalist.  If this is the type of argument used to defeat programs 
such as direct lending -- this country is in worse shape than it appears.

> I am a student myself and have borrowed under direct lending and 
> bank lending.  Of course I like the direct lending system better, but 
> it is unnecessary and should be eliminated.  We all have to make 
> sacrifices to make this country great.

First of all, some people CANT make the sacrifice to pay $400 plus 
interest to a bank -- simply because the government wants to award the 
bank that privilege.

Second, this country is not going to be great if the sacrifices come at 
the cost of quality education.

Third, by this same logic -- student loans are unnecessary and should be 
eliminated.  

The only unnecessary part of student loans guaranteed by the government 
-- is profit being made off of them.  Because this is the government 
guaranteeing the loans -- it is the people investing in themselves.  
There is no reason, nor justification, to artificially add an additional 
layer to the bureaucracy of student loans -- just so banks can take a 
bite out of the process and make an unnecessary profit.

Charlie
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