It’s true! What other explanation can there be for his “plan” to reinstate the old system of privatized federal school loans? Here’s how it used to work: the government would give money to the banks to loan to students. The loans were guaranteed so if the student defaulted, the banks would lose nothing. If the student paid the loan back, the bank would skim off a large amount in interest. A perfect example of privatized gain and socialized risk. This cost the taxpayer billions of dollars over the years and the banks did exactly nothing to earn this money.
That all went away in 2010 with the passage of the Affordable Care Act in 2010 when President Obama slipped in a rider that did away with the middleman. Federal loans would now be made directly to students and the banks were cut out. The outrage at this assault on freedom and liberty and mom’s apple pie was overshadowing by the earth-shattering tyranny of universal healthcare. Mitt Romney wants to fix that. Rachel Maddow explains Romney’s “plan”(with pictures!):
Yup, Romney’s “plan” to fix the school loan debt crisis is to give money away to the banks:
Reverse President Obama’s nationalization of the student loan market and welcome private sector participation in providing information, financing, and the education itself.
It is unclear how cutting out an unnecessary middleman is “nationalization” but conservatives are easily terrified and nothing is scarier than the evil gum’mint taking control of stuff. Especially when that stuff is the government’s money. TYRANNY!
Unsurprisingly, the banks are completely on board the Romney gravy train since they feel slighted by Obama’s move to cut them out of the deal:
Private lenders, however, argue that Obama’s move in 2010 cost the industry thousands of jobs as companies went out of business or shut down divisions that dealt with the servicing of such loans.
That has to be a new high water mark for audacity; parasites complaining they can no longer suck the taxpayer’s blood. You would think that Republicans would applaud this elimination of unnecessary government waste but you’d be 100% wrong. Republicans LOVE government waste! As long as someone (a rich someone) can profit off of it.
Still, not everyone on the right is fond of Romney’s “opposite day” strategy:
Delisle, a Republican who supports Romney on most other issues aside from student loans, said Obama deserves credit for reforming a broken system.
“On this issue, Romney is just ridiculous,” said Delisle, who nevertheless says he will most likely vote for Romney. “His campaign staff doesn’t have any new ideas, so they said, ‘’Let’s just go back to what we were doing before the Obama administration came into place. ”
That’s funny, a Republican just summed up the entire Romney campaign in one sentence, “Let’s just go back to what we were doing before the Obama administration came into place.”
Sounds like a winning strategy! For the corporations.