by Wendy McElroy, Dollar Vigilante:
Obama just signed the Bipartisan Student Loan Certainty Act. It was cheered as a victory for students in higher ed because it keeps federal student loans at low interest rates through 2015. The victory is Pyrrhic.
The law is more accurately called the Debt Serf Pipeline Act because students who use the loans are pouring their financial futures down the insatiable drain of the state. Like the grads before them, they are likely to end up moving back home and working two minimum wage jobs, if they are lucky enough to get them. Their subsistence wages will go toward enriching the federal government which expects to make $184+ billion on the loans over the next 10 years. Because Congress excluded student loans from bankruptcy proceedings, there is no way out for this generation of grads. The debt collectors will dig them up from the grave, if necessary.
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