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Taxpayers To Lose Billions On Student Loan Refinancing
Monday marked the beginning of what could end up being one of the largest taxpayer-funded bailouts in history. On the heels of Corinthian Colleges’ move to shutter its remaining campuses after government investigations tied to deceptive practices forced the school to wind down operations last year, thousands of students have appealed to the Department of Education to have their federal student debt forgiven.
The initial joint petition sent to Secretary of Education Arne Duncan came from dozens of consumer and labor organizations claiming to represent some 80,000 aggrieved students seeking to have their loans discharged on the basis that the government’s move to close the school was the result of Corinthian’s fraudulent practices.
Initially, the Education Department wasn’t sure how to proceed, but after two weeks of apparent deliberation, the decision was made that students who attended schools run by Corinthian would be eligible to have their federal student debt forgiven, a move that could cost taxpayers some $3.6 billion.
Should the government crackdown on for-profit institutions continue, the taxpayer bill could run into the tens, if not hundreds of billions. For the Education Department, it’s a choice between eradicating fraud and saddling taxpayers with the bill once the schools are closed.
Because nearly 90% of students at for-profit schools have funded their education with loans, and because these institutions only exist thanks to federal funding for students, every for-profit school that’s closed down represents a potential landmine for taxpayers. This, it should be noted, is just as much the government’s fault as it is the schools'. Questions about the integrity of for-profit colleges have existed for years and yet the government continued to allow them to operate while their CEOs reaped millions in compensation.
Now, it’s time to pay the piper and unfortunately, it’s taxpayers who will end up getting the bill.
One thing we haven't discussed as of yet, is what might happen should students who do manage to land a good job after graduation decide to refi their student loans. Just as P2P lenders are eager for borrowers to refi their credit cards with P2P loans, startups backed by VCs and hedge funds (whose funding costs are basically zero thanks to ZIRP) are cherry picking the most qualified graduates and pushing them to refi their student debt at rates that are far lower than what the government charges. Bloomberg has more:
In a growing refinancing boom, a new generation of private lenders -- backed by hedge-fund billionaires and Silicon Valley royalty -- is targeting successful graduates with professional degrees and student loans. For the borrowers, “it’s an uncashed lottery ticket,” said Brendan Coughlin, head of education finance for Citizens Financial Group Inc.
There’s a catch. Their good fortune could cost taxpayers billions and damage the credit quality of the government’s $1.2 trillion student-loan portfolio, the biggest pool of U.S. debt, except for mortgages. That’s because professional-school graduates and other borrowers with successful careers subsidize the less fortunate, who are more likely to default.
“Cream-skimming by private lenders will remove these profitable loans and leave mainly -- or only -- the more risky loans,” said James McAndrews, executive vice president and director of research at the Federal Reserve Bank of New York...
Traditionally, the student-loan program returns money to the U.S. Treasury. Now, the exodus of its most reliable customers could lead to losses.
“This is one of those looming financial bills that is going to come due,” said Jaret Seiberg, a Guggenheim Securities analyst. “If the best borrowers leave, taxpayers are going to have to ante up even more cash.”
In other words, just as the Fed remits 'profits' from SOMA to Treasury and just as Fannie and Freddie are subject to a Treasury sweep when they turn a profit, so too does the Treasury collect from the government's student loan program (recent estimates show the US 'profiting' to the tune of $110 billion over ten years).
However, as would be the case if some "adverse scenario" were to suddenly blow a hole in Fannie and Freddie, losses on the government's student loan portfolio will ultimate be borne by taxpayers. Removing the best borrowers (i.e. the ones making payments and paying down principal) from the equation makes an already bad situation worse, as billions in interest is lost to prepayments funded by private sector refis. Here's more from Bloomberg:
Borrowers holding about $150 billion in federal loans have strong enough credit that private lenders could offer a cheaper rate, Goldman Sachs Group Inc. estimated in a March report.
Refinancings are likely to reduce by as much as $10 billion to $20 billion the value of the federal portfolio because of lower income from loan payments, primarily for graduate school, according to Deborah Lucas, former chief economist at the Congressional Budget Office and now a Massachusetts Institute of Technology finance professor.
The situation is another consequence of historically low- interest rates, as well as a peculiarity of higher-education finance. Congress sets federal student-loan rates, and older obligations now demand as much as 8.5 percent annually. For decades, government loans undercut the private sector. Now it’s the other way around.
Companies pitching the refi opportunity include SoFi, LendKey, and Earnest which together have raised hundreds of millions from VCs and, of course, from PE and hedge funds:
That number is sure to rise, since better-quality borrowers have no logical reason to stay put and subsidize others, said Vince Passione, founder of Lendkey Technologies Inc., which connects students online with private student-loan lenders. In April, an affiliate of Apollo Global Management LLC, billionaire Leon Black’s private-equity investment shop, said it plans to invest $1 billion in refinanced student loans through LendKey.
Other big names are taking notice. A company called Earnest, which started online student-loan refinancing in January, has backing from Silicon Valley venture-capital firm Andreessen Horowitz, famed for helping seed Facebook Inc. SoFi’s investors include another hedge-fund billionaire, Dan Loeb, and Peter Thiel, a co-founder of PayPal.
* * *
Putting the pieces together, we have the unintended consequences of ultra accommodative monetary policy (i.e. private lenders offering rock bottom refi rates) conspiring with both the VC world's enthusiasm for anything that even looks like P2P lending and billionaires' penchant for getting involved anywhere there's money to be made, to siphon off the best loans from the Department of Education's portfolio, leaving taxpayers with a book full of IBR enrollees and severely delinquent borrowers who aren't even thinking about making payments:
The government will be left with a greater share of borrowers like Jennifer Rejon. A 29-year-old single mother of a 10-year-old daughter, she has $17,000 in federal loans.
Under a federal program to help low-income borrowers, Rejon, who lives in Chicago and has struggled to find a job, isn’t making payments. “I’m trying to at least get my life on track and be able to pay my bills,” she said. “The loans are the last thing I’m thinking about.”
Take the above and throw in a few more $4 billion for-profit debt discharge fiascos and taxpayers could be in the red on the government's student loan portfolio before the mass debt cancellations even begin.
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Moral hazard is a real motherfucker...
same as it ever was...
In other news, student is lose 4 year in pursuit of liberal art degree as great USSA economy is crumble in furtherance of secular progressive ideology. Time for USSA to grow pair.
Tell "Single Mom" Jennifer to head out to Vegas. She'll pay down her loans and her bills quickly...
http://ktnv.video.jrn.com/Viewers-chat-strip-club-grads-29193057?playlistId=14990
Boris is hire many stripper in Minsk operation for extraction of contaminant from hi-grade copper ore.
These articles always state that the taxpayers get saddled with those losses. I think that SAVERS everywhere - in this case US$ savers - will pay a large part towards these losses because government debt is never going to be paid back, but monetized = it's mainly paid through money printing and therefore by debasing the currency.
"taxpayers To Lose Billions On Student Loan Refinancing"
So if they don't default, we will get money back? LOL. Once our money goes to the government it is already lost. Doesn't make any difference if student loans are repaid or not. It doesn't cost us taxpayers anymore than we have already lost. The government debt just goes up and we all know it will never be repaid anyway.
Student loans are not disachargeable EVER. So the VC started companies that are getting them to refi, these should never have the same protections / non-dischargeability. If they do thne it's obvious someone has captured the regulators.
you don't need to capture the regulators... they have a no-corruption policy
everything the government does incentives the american way... debt, spend, debt, spend.
the government is sending another crystal clear message here: let's all have a good laugh at the idiot corinthian college graduates who got jobs, saved, and paid back their school loans! those idiots could have bought more fat-burgers and i-bling and .gov would have forgiven their debt anyways! anyone who is responsible, saves, and pays off debt is a loser, and let's make sure everyone knows it!
i'm 100% sure every government employee tells his/her kids to NEVER pay off any debt. and any kids who have recently graduated from college? they truly would be idiots if they decided to pay back their school loans after seeing this news. the optimal thing to do would be to pay back the minimum without triggering collection agencies and penalties.
i have friends who want to "die in as much debt as possible", and why not? of course, i am one of the losers who scrimped and saved to pay off school debt as early as possible, so i guess i'm biased here. to be fair to me, that was back before there existed school debt forgiveness plans... if i had graduated recently, you can bet your ass i would be as deep in debt as possible.
Inflation is a tax.
Department of Education failed the taxpayer. Does Obama have any agency that isn't fucked up? His administration is out of control and accountability. And where was the oversight in Congress? We taxpayers are abandoned. We are citizens without identity.
We are entering a political crisis of epic proportions - this will lead the mother of all problems a total collapse in leaderhip and civil society. If you are 20 years old you will be lucky to live to 40.
So max out the student loans and party hardy!
"Does Obama have any agency that isn't f*cked up?"
Does is papal see deficate in boreal forest?
Was Reggie Love promoted to Party Czar?
" For the Education Department, it’s a choice between eradicating fraud and saddling taxpayers with the bill once the schools are closed."
In this case, I guess they were able to kill two birds with one stone.
This is deep denial from government as per the usual. They recognise that the education racket is offering bogus classes for useless degrees that guarantee unemployment. So instead of eliminating the pointless classes and the grifters who teach them, or deducting the wasted money from the school's profits, they saddle the taxpayer and let the original problem continue.
This way idiot students can still take dead end courses, and the grifters can still get paid to teach them, and the schools don't have to change anything. And of course the idiot students don't have to worry about loans while they're waiting tables. Because that's what taxpayers are for.
I'm starting to notice the financial sector or government never takes it in the ass. Oh look my shoes are untied.
That's a myth.
I took mechanical engineering in robotics and automation. There are no jobs out there (unless Daddy is President or you have fifteen years experience), making me an idiot for going, for believing people when they said we were on the verge of some "huge shortage..."
Why pay to automate when you can send the whole line to Hunan province and pay a Chinese teenager 30 cents a day?
If we were to dig further down in the actual loan details, we'd find more people like me than someone looking to party off student loans,
Time for putting civil confiscation to good and proper use. Private CEOs and minions should experience a clawback of epic proportions.
If they can wipe out those loans they can start afresh with new blood.
The same can be said of all existing credit. People have already left Mother Nature behind and got used to the notion of imaginary credit as real 'money.' There is no going back to a purely real-hard-money type of arrangement again - people don't think that way anymore. Wipe the slate clean, and people will borrow with such vigor that it will make the current levels look tame. Give 'em another chance, and the people will not only walk into their shackles and love 'em, they will pay taxes for the privilege of wearing them.
Funny, this private enterprise endeavor might finally be the first time in my life where my student loans can be reduced from the predatory rate of 10% down to something more in line with the "market."
why did you accept 10%? Are you accountable for your decision?
Because at the time, it was in line with other interest rates. Yes, I'm accountable, but gee, why hasn't fedgov ever offered anyone the opportunity to refi in a falling interest rate environment, if their goal is to help people to become educated and thus productive members of society?
I guess for the same reason the government could care less about my car and house interest rates? Surely they want me drive a safe car and live in a safe home so I can get to work on time and be rested for my next days work?
The students are always coming in my shop complaining about the cost of college. I ask them if they have loans and they say yes, never realizing that the loans are the reason for the cost being so high. This country needs a fucking enema
Boris is not recommend colonic cleaning during intimate personal exchange.
The alternate meaning of ATM runs.
Boris is see what you are do! You are very smart funny! Better is to keep ass-et in liquid form.
We've missed you around here, Boris. It gets tiresome reading only comments from Bitcoiners, Goldbugs, and Bigots.
Application of giant Fleet® nozzle to festering swamp on banks of Potomac River is not concern to cause. Such cleansing a necessary task and high level of disgust has. Is intimate personal exchange? Is not.
So not to worry and apply forcefully.
"Taxpayers" don't lose a damn thing, as long as the USD is the Global Reserve Currency (GRC) and the Fed creates, extinguishes or manipulates the digital numbers that are US Debt Currency.
All that happens is that we export our problems to the ROTW, whose Debt-load goes up also. It's the world's largest Ponzi.
The ONLY reason why US Subjects are still required to "pay taxes", is to perpatuate said Ponzi Americano Casino.
Taxpayers don't lose? You don't seem to understand how fiat currency works.
Most of it was spent on Chinese carry out and dime bags of weed (at least more valuable than a liberal arts degree, anyway). Half these kids look at a student loan as a ATM machine, so WTF did they think was gonna hapeen?
We got the government we deserve, I guess. Well, not you and I, but those other fuckers who agree that education is a "right".
I can guaranfuckingtee you that organized crime and foreign criminals have a hand in the TITANIC amount of money flowing through the lower-education sewer pipe.
Why create a bust-out company when you can create a bust-out school?
Better to do it this way than panic the markets. We wouldn't want the 'one-time' (wink, wink) 25% wealth tax to yield any less than our current projections ($20 trillion).
Elizabeth Warren blowback moment coming, I see a criminal conspiracy between the feds, bankers and loan guarantors, they closed the colleges for a chicken shit reason knowing this would trigger a payout to the banks that "printed" up the loan money.
Warren also hates competiton that doesn't pay a toll to Elizabeth Warren.
This will piss off everybody that's stuck paying student loans, as well as everybody stuck paying off Corinthian student loans.
Piss everybody that was attending Corinthian not on the basis of graduate employment rates but to acquire a specific marketable skill.
Thank you Elizabeth Warren agent of looters!
Fauxcohantas blows. period.
The American way...
Go into debt...
sign a contract...
breach that contract...
and let taxpayers pay for it without contributing a dime...
it’s only fair... that others foot the bill...
Just like that Jade Crap with the army in the US!!!
America has millions of citizens killed worldwide by it’s army... and now their army comes home... AND HORROR!! That those soldiers might do what was funny when it happened on the other side of the world for decades...
Does any American realise how much fireworks will be lighted when the first American citizen gets shot "by accident" by a American Mexican crossbreeded Azian African, middle east soldier?
IT’S CALLED BEING NAIVE!!!
ACTION <> REACTION!
This. You want a preview of coming attractions @ home? Watch any country's military in action abroad. Is the military engaged in a growing number of wars? Do those wars lead to more wars? Do military personnel murder foreign nationals wantonly with little fear of reprimand if they murder more than those specifically targeted? Do they torture captives? Do they lock them up without charge or trial?
That's why Americans are buying so many firearms and why concealed carry permits are skyrocketing.
we all know what's coming and who we're gonna have to fight, kill, and overcome.
Anybody who does that, gets it.
The rest... will be part of the problem.
But remember those 50.000 drones that are being build to fly over America? Most of them are ready!
That’s 10 times more than what the US Army has ever used in all wars combined.
It will be like shooting fish in a barrel.
As a European, it’s just crazy what we get to see from America. It’s almost daily that we see a WTF moment.
Clintons started this whole mess. Bill & Hillary got huge backing from "for profit" colleges going way back to the early 1990s.
Can I get a reverse student loan refi? I'd be down for that.
Now that is a friggin great idea. You receive the value of what you spent on college back, and when you die, they take back your degree. Perfect
Yup! You guys can have it, my kids don't deserve it anyway!!!
Hmmm! Kind of like a title loan. Degrees for collateral.
As a taxpayer, I would rather pay for a bunch of kids' college loans than pay for CIA "contractors" to go around starting wars and messing in other people's elections.
Neither. These are college students, not kindergarten. Likely the cosigners (parents) that are pushing this.
Yes, I agree. Two wrongs don't make a right. I'm just saying that welshing on a college loan might be a lesser wrong than welshing on a promise to "bring freedom, democracy, and Mom and apple pie" to Iraq.
Why? The money ends up in the same place.
My kids plan to study abroad -- where tuition is a fraction of US costs.
They plan to use Scholarships and summer jobs to pay for their Higher Learning. And if there is still a nominal debt left after that, they then plan to take advantage of low-cost financing. This is just Applied Common Sense 101 + Practical Finance 101.
Dumbass kids from Freedumb lovers can pile up mountains of debt, if they like, and get conditioned to be perpetual debt slaves. Which is what it's all about: Condition society to become a neo-feudal Financial Rentier Society. It's the Reverse Robin Hood effect.
6k per student in Belgium and we’ve got one of the best Universities in the world.
True, the University of Waffle House will fully prepare students for current US job market.
For global job market, is recommend to attending IHOP?
Oui, mon ami. Moules, Frites, et Stella. How bad can that be?
;-)
Do I have to go to class to get a student loan?
Not really you can pass with a D, takes hardly any effort...trust me.
I'm telling on everyone here about what you said about the government to the DOJ.
The Neo-Feudal Financial Rentier Society:
Constant use of Credit Cards instead of Cash or Layaway + Car Loans + Student Loans + Housing Loans/Mortgages + Home Improvement Loans + Gadget Financing + Health Care + Elder Care + Reverse Mortgages + Funeral Financing. These will all bankrupt society, and steer/drive it to the point (where Banksters want them): They will be begging for Socialist reforms and 'Affordable Costs' (Rentier Financing), even if they have to pay in perpetuity -- from cradle to grave.
The Reset will make sure that this all happens. Which is why I'm not entirely convinced that Russia and China (old commie/socialist countries) are actually opposed to a NWO, if said Order is a Socialist/Rentier Society. It may yet be a lot of Kabuki Theater, but we won't know for another 1-3 years, is my guess.
And the Nowannapay generations have the temerity to say Grandma's drawing meager Social Security are leaches on the system and tell them to die already.
They vote in Obama hoping for freebie health insurance which now costs double and cry about how they were ripped off when they partook party party money from gov.
Just like the housing debacle they were just as fraudulent as those issuing the loans.
You started it!
Grandma is getting payments that are unearned. You can call it whatever you like. Some call it "a wealth transfer payment" and others might consider it a "political bribe."
And the DOJ indictments of Corinthian management are where to be found?
I think I could probably rattle off at least a handful of serious charges that should be sticking like glue to these fuckers.
No prosecutions = another step towards chaos.
Good job fucknuts.
DOJ is too busy issuing subpoenas to internet posters who hypothetically threaten to dice/slice/chop tyrants and politician traitors.
What a racket. Endless supply of free money from .gov regardless of quality and cost. Can't pay it back, No Problem! Joe taxpayer will take it up the ass! The USSA ship is sinking and it's free for all.
what statutory authority does the Ed dept have to just forgive these loans? seriously. congress didn't appropriate $3.6B to bail out Corinthian suckers. this is no different than the IRS deciding, w/o an act of congress, to give 3 years worth of EITC "refunds" to illegals.
and technically, those students weren't defrauded - they paid for classes by the semester and they got to attend those classes. as with any other college there's no guarantee you get a degree.
Interesting to watch the
DOWNWARD SPIRAL:
However, the language used in this kind of article is perennially misleading whenever it refers to "taxpayers." The ONLY thing that "taxpayers" do inside of the long-established MADNESS of the Money As Debt system is appear to underwrite the creation of the public "money" supply out of nothing as debts. Furthermore, that appearance of underwriting the MAD "money" becomes more of merely a sham, and less of a reality, every day, due to the runaway nature of that overall MAD debt slavery system driving numbers which become debt insanities.
The Student Loan issues are merely the most morally obnoxious of all the ways that the government enforces the frauds by privately controlled banks, that are legally allowed to counterfeit the public "money" supply. However, looked at in the bigger picture, all the Student Loans combined are trivial, since the amounts of "money" made out of nothing to gamble with have become orders of magnitude bigger than all of the same "money" that flesh and blood people use to live with.
Historically, it was relatively more correct to say that the "taxpayers" were backing up the fiat "money" made out of nothing as debts by privately controlled banks, due to being forced to pay their taxes using that kind of legal tender. Once upon a time, long ago, when the runaway debt slavery systems had not yet generated numbers which were debt insanities, then the "taxpayers" were more actually underwriting the issuance of the public "money" supply as government enforced frauds by privately controlled banks. However, since 1971, in the USA, the issuance of the public "money" supply was no longer connected to anything in the material world, and therefore, that MAD "money" was able to launch off on a nearly perfect match to an exponential function, in which context the Student Loans were always a relatively trivial aspect in absolute magnitude, although still symbolically significant.
Anyway, the point is that it is now relatively RIDICULOUS to assert that the "taxpayers" will "pay" for anything inside of the overall runaway MAD "money" system. The background problem is that the parameters of the MAD "money" system have become amplified to such astronomically amplified sizes that it is no longer possible to fully comprehend that, except as abstract numbers, which make no physical sense, because those numbers exist in a virtual world of electronic frauds, backed by the threat of force from atomic bombs, so that those numbers are now RIDICULOUSLY beyond the physical realities of the flesh and blood people, and even beyond the physical realities of the legal fictions of corporations being included into that.
Most discussions of "taxpayers" paying the bills have become based upon nostalgic nonsense, that still presumes that somehow the political economy makes physical sense, and is based upon production. However, the actual existing situation is that the political economy is now almost totally dominated by government enforced frauds by privately controlled banks, so that there are RIDICULOUS ratios in the real relationships between the MAD "money" versus the rest of the physical world. Of course, that applies to Student Loans too ...
The basic way to understand "taxpayers" inside of the runaway MAD Money As Debt systems is that they have behaved like incompetent political idiots, or Zombie Sheeple, so much, for so long, that they have gradually become more and more irrelevant to the world of political economy, wherein there are globalized systems of electronic monkey money frauds, backed by the threat of force from apes with atomic bombs. That what actually EXISTS, and those are the reasons why American "taxpayers" no longer actually pay for much of anything anymore, other than through morbid psychological and political habits continuing to sustain the appearance that they are underwriting the issuance of the public "money" supply out of nothing as debts, by theoretically being obliged to pay their taxes using that form of legal tender.
As usual with the comments that I pass the time amusing myself with by posting on Zero Hedge, there is no practical point to my discussing those social facts regarding the MADNESS of the established monetary systems, because the vast majority of people will continue to want to believe in the bullshit about that MAD "money" system, rather than think through the degree to which that system has become psychotic runaway criminal insanity, since it was always based upon the successful application of the methods of organized crime through the political processes, in order that the biggest gangsters, the banksters, could capture control over the powers of government, and thereby achieve their astonishing privilege of being able to make the public "money" supply out of nothing as debts, while governments continued to enforce that frauds.
That is the real context in which Student Loans exist. That "money" did not exist until the students "borrowed." Thus, they entered into the long-established debt slavery systems, which had already become debt insanities before they were born, and even during their life time that debt insanity had still been doubling down! Meanwhile, the vast majority of "taxpayers" continued to behave like incompetent political idiots, or Zombie Sheeple, being fleeced to exhaustion, while they were set up to be slaughtered. That is the political economy that young people are entering into when they take "Student Loans." Therefore, those "Loans" are actually just another, relatively minor, and insignificant wrinkle in the overall globalized systems of MADNESS, wherein the American Dollar was the most MAD.
Tragically, there are no good reasons to believe that enough of the "taxpayers" will ever bother to understand what has been really happening. They would have to suffer through severe cognitive dissonance to comprehend that money is actually measurement backed by murder, and that they were backing that up, but only through themselves acting like incompetent political idiots. There is almost nothing but a core of organized crime, surrounded by layers of controlled opposition, both of which use the same bullshit language when they think and communicate. That is what the article above was doing with respect to how it was referring to "taxpayers," when the actual ratios of runaway MADNESS have become such that everything that those "taxpayers" actually do has become something roughly like 1 in 100, while those runaway debt insanities are driving it towards becoming 1 in 1,000.
While it amusingly ironic, to a macabre sense of humour, that the Student Loans are one of the biggest assets in the books of the Federal Government of the USA, while, as the article above pointed out, those assets are being cherry picked away, so that the Federal Government will be left more with the uncollectable junk, all of that is RIDICULOUSLY TRIVIAL, in the overall bigger picture, except for being symbolic ... However, there is no practical point to my attempting to explain that situation, since almost nobody wants to understand that, but rather, greatly prefers to continue to believe in bullshit. In order to attempt to put Student Loans into the overall EXISTING social situation, one has to try to comprehend the world where the debt controls are backed by the death controls, BUT, those have become electronic frauds, backed by atomic bombs. Since the electronics and atomic power are many orders of magnitude greater than anything that previously existed in human history, the established systems of ENFORCED FRAUDS ARE ORDERS OF MAGNITUDE BIGGER!
By and large, to try to comprehend the EXISTING MADNESS one has to attempt to understand human beings and civilizations are manifestations of general energy systems, which were always based upon backing up lies with violence, where those lies became electronic, and the violence to back that up became atomic, in ways that the overwhelming vast majority of people do not understand, because they have been conditioned for generation after generation to feel like they do not want to understand. Moreover, even the banksters that originally made and maintained the previous systems of paper frauds, backed by gunpowder force, no longer fully comprehend the systems of electronic frauds, backed by atomic bombs, that they have been able to construct ...
"Taxpayers To Lose Billions On Student Loan Refinancing"
Zion to reap billion and billions.
Liberty is a demand. Tyranny is submission..
Stop interjecting "Zion" into every fucking discussion you ignorant cunt.
“Rev. Billy Graham openly voiced a belief that Jews control the American media, calling it a "stranglehold" during a 1972 conversation with President Richard Nixon, according to a tape of the Oval Office meeting released Thursday by the National Archives.
"This stranglehold has got to be broken or the country's going down the drain," the nation's best-known preacher declared as he agreed with a stream of bigoted Nixon comments about Jews and their perceived influence in American life.
"You believe that?" Nixon says after the "stranglehold" comment.
"Yes, sir," Graham says.
"Oh, boy," replies Nixon. "So do I. I can't ever say that but I believe it."
http://www.jewishmag.com/167mag/kissinger-nixon-war-watergate/kissinger-...
Yeah, I responded to this in another thread. No barriers to entry means a business opportunity that disproportionately attracts historically oppressed groups. Same thing happened when Jews were discriminated against in hiring by "white shoe" law firms. They went into M&A law, deemed "distateful" by the gentile law firms of the day.
attracts historically oppressed...
Interesting to note this was the reason why Nixon was sent back to a minor private law practice in Whittier before being attracted to Washington, this after being rebuffed in his attempt at practicing law in NY due to his California law degree and being a gentile were considered not acceptable to the jewish gatekeepers of his day.
Evidently your observation has some merit.
jmo.
You seriously are fucking moronic. Jews were not gatekeepers to the legal profession. The exact opposite. Jews were deliberately excluded from the established law firms and the high ranking educational institutions. For example, Harvard notoriously enacted a quota system to keep Jews from filling the ranks. Asians today face many of the same issues.
You seriously are...moronic.
I could be I suppose. Like most, I'm vulnerable to historical reports on those to whom I have not had personal relationships with. And I'll concede facts should probably be relied on before publicly proclaimed. Therefore, I would greatly appreciate it if you'd provide the report from whatever issuing agency you received my mental incapacitation from that not only arrived at my being “moronic” but “f-ing moronic”.
Absent that, I will assume your ability to construct arguments from whole cloth are not entirely unlike our next proposed Dear Leader’s despite her performance at the “Watergate Hearings” she so famously reveled in and built her reputation on.
Sure would be interesting if her emails, correspondence / personal life / business dealings / conversations and supposedly other "public" actions / activities were to become as transparent to be able to find their way into the public's awareness as Nixon's tapes. We all know how well her husband's attempts at controlling such knowledge were / are.
BTW, should there be anything read into the fact that it took "you" 2 days to respond? Best I can tell, ZH has taken to scrubbing histories more than 2 weeks old, which would mean no one would be able to tell I’ve been responding to comments for the over 5 years or so. (Like most, I lurked for over 2 years before "coming out".)
Not that I care, but I'm wondering what kind of chilling our, (the US citizen's), right to speak is actively being forced "underground" due to the (mis)appropriation from the Church of the hitherto sovereign attributes of faith, hope and love (and trust), our current WS / DC alliance has and are assuming upon themselves and thereby foisting upon otherwise faithfully believing Christians.
Pretty clever of the current government / Fed paid "folks" to establish a system that Christians should now have to start suspecting fellow worshippers as agents of a state / system whose leadership is set on their demise.
“I saw the souls of them that were beheaded…” Revelation 20:4 bbAnd in case you missed it, this is Jmo.
Still can't fugure out which side of the issue the article comes down on. In hindsite, the issue virtually seems moot in that the problem it seems Graham was concerned with was primarily the pornographic and atheistic tendencies by the then (and now?) NY "jewish" news / media entities, not to mention the less than favorable light the previous LBJ and then current administration was being portrayed in, i.e. 11 of the 12 writers for the then famously popular and bawdy "Rowan and Martins Laugh-in" were self proclaimed "jews" who routinely skewered them in not too unsimilar fashion as seen on ZH today.
Considering Graham's position and following, I was personally taken back by his seeming "apology" 30 years later.
It would be interesting to hear what the flies on the wall would be saying in the WH and Teneo board rooms of today.
just wonderin'
(And yes, I was raised to love Emil Villa's Hickr'y Smoked Pork Ribs with Brown Gravy, a frequent after church Sunday tradition.)
Billions....hahahaha....whatever. Signed, Trillions (of shit paper)
Just to add a little perspective. as of 2003. And for what?, that isn't even considering the BAILOUT, HANDOUT of SEVEN TRILLIONS of US Taxpayer dollars, yours, and mine, to the BANKSTERS on the Upper East Side and they've done well, speculating in Tel Aviv real estate for instance using that taxpayer money.
Cost to American Taxpayer THREE TRILLION DOLLARS as of early 2003. Probably double that by now.:
http://www.wrmea.org/wrmea-archives/251-washington-report-archives-2000-...
Bill Clinton tightened the screws on student loan discharge and Joe Biden finished the suckers off with his Bankruptcy bill in 2007, he fronted for the credit card scammers while a Senator.
White students listened to .gov took out loans to pay for the RIP-OFF tuition while people of color received PERSONAL HELP in filling out SCHOLARSHIP applications which are widely available if you are NOT White. White students had NOBODY looking out for them, the young and the middle-aged alike. They were on their own.
Most of these students were just doing what SOCIETY said to do, and why should their LIVES be ruined, forever? A dear friend of mine's son did what everybody says you should do and got loans and went to college to study engineering. Upon graduation he found that the firms were hiring Indians and other Asians for those engineering jobs. His father had been IT who was kicked out after he trained his Indian replacement. So since all the "favorites" of the regime have been getting "goodies" from We, the Suckers, why shouldn't some of our own get it? For goodness' sake.
SCREW THE BANKSTERS and their PUPPET in the Black House.
What do you think this is if not RACIAL DISCRIMINATION against Whites?
Bill Gates Millenium Scholarships
"Students are eligible to be considered for a GMS scholarship if they: • Are African American, American Indian/Alaska Native, Asian and Pacific Islander American, or Hispanic American;"
"The goal of GMS is to promote academic excellence and to provide an opportunity for outstanding minority students with significant financial need to reach their highest potential by:
Reducing financial barriers for African American, American Indian/Alaska Native, Asian Pacific Islander American and Hispanic American students with high academic and leadership promise who have significant financial need;"
http://www.gmsp.org/
http://college.lovetoknow.com/Bill_Gates_Scholarship
The “Hispanic Scholarship Fund” (HSF) says that it “aims to put a degree in every Latino household by 2025” through its affirmative action program in college recruitment.
Funding for the HSF comes from a large number of corporations, which, according to that organization’s website, include the FedEx Corporation; the Mazda Foundation; KLASS Time; GMAC Financial Services; Lowe’s; the McNamara Family Foundation, Inc.; Goldman Sachs; Procter & Gamble; Toyota Motor Sales U.S.A., Inc.; the Verizon Foundation; McDonald’s; Target; the Morgan Stanley Foundation; Nissan North America, Inc.; the Sallie Mae Fund; Wells Fargo; the Draper Family Foundation; the Shell Oil Company; the Wachovia Foundation and the UPS Foundation, amongst many others.
The HSF says specifically that it is only for “Latinos” and those of Hispanic descent.
It obviously does not concern these corporations in the slightest that their money is used specifically for non-whites.
On the HSF’s website, under their “Frequently Asked Questions” section, the policy is spelled out in no uncertain terms:
“Do I have to be Hispanic/Latino to apply?” is the question the website asks.
http://www.hsf.net/innerContent.aspx?id=1196
The answer is: “Yes. You or your family must be descended from at least one of the following countries: Spain, Mexico, Guatemala, Honduras, El Salvador, Costa Rica, Nicaragua, Panama, Colombia, Venezuela, Ecuador, Peru, Argentina, Chile, Bolivia, Uruguay, Paraguay, Cuba, Puerto Rico, or the Dominican Republic. Students from Brazil are eligible to apply.
it should be noted, is just as much the government’s fault as it is the schooll's...
What about the students whot took out loans to pay the 30K/yr tuition at these fly by night technical schools to get completely useless degrees in medical records keeping, computer animation, and culinary studies when the could have gotten the same education at a local communuty college for about 1/4 the price?
Ah ZeroHedge is finally stepping into the rabit hole that is Federal Student Loans. I'm 3 years out of medical school with $200k in debt. My first year of residency I paid $80/month for my student loans (making them negative amortizing as it wasn't covering even the interest), then about $330 a month after for the next two years. I worked at a public hospital so those years count towards Public Service Loan Forgiveness, meaning after 10 years the loans are discharged and the tax payer takes the write down so long as I work at a public hospital (or the VA). If I do choose to go into private practice I will just refinance my loans into the lower rates from a private lender. There is infact no situation where a rational borrower would actually pay back the government the money owed, they literally have to lose money.
The real catch to the federal loan pool is that while it remits profits back to the treasury, most of these are book value profits and not cash flow. For example with my loans (rounded numbers for easy math) $200,000 at 7% interest yields $14,000 profit for the treasury this year. However the cashflow on those loans was only my $330 x 12 payments= $3,960 so $10,000 was amortized and I accrued 1/10 of my required loan forgiveness payments which would be worth about $21,000. While my payments will increase over the next 7 years as I earn more income, I will still have a large balance at the end of the 10 years (approx $160,000) which the government will write down. So while the government will book profits of $14,000 every year for 10 years on $200,000 in loans, after 10 years it will have to take a $160,000 write down on the outstanding loan balance, the end result will be 0% or negative returns on a $200,000 investment over 10 years, which they will most likely be paying a higher interest rate on. The whole thing is mind boggling.
You see, here in American, EVERYTHING is FREE and nobody has to work.
What could possibly go wrong?
Remember, "Team Clinton"'s male half William was a chancellor at a "for profit" educational institution. That is, until the shit hit the fan and it no longer looked good after Hitlery came out with her (new, updated) stance/message concerning Corinthian, et al.
So these two f*cks took advantage of the networking aspect of his chancellorship to expand speechmaking opportunities and shit like that - but changed their tune at the very first publicized problem within this very excellent industry. That Hitlery is a scheming, conniving, honorless spent-condom-like piece of dirty trash needing to be eradicated just like a wall street banker and the FED.
One thing I know for certain, as a taxpayer, I LOSE. Every day at all times.
The irresponsibility of the government for doing this and the media for not reporting this fraud broadly makes me want to cry.
Clearly, they are just stacking the debt on the taxpayer and kicking the ever growing debt snowball down the road. If they try and inflate their way out, they will have to double down on social welfare payments to the 80% that won't be able to afford to turn on the lights.
Outright default is the only way out.
I'm forwarding this article to my Rep and Senator with some harsh comments and suggest other do the same, if only to receive an idiotic form response about how important education is to them.
As taxpayers we deserve a right to have quality and affordable education, but unfortunately a lot of families have to apply for loans in order to get a degree. Frankly speaking education in America has four big problems: the parents, the kids, the teachers and the education system itself. Too many parents don’t value education enough, not college, but just good basic education. Too many kids don’t know even the meaning of the word, “discipline”. Too many teachers are too eager to jump into programs without proven results. I'm not surprised that writing services like Essay Online Store are so popular today. We need new, improved education system, maybe there is a need in new vision of teaching and improve standards of Common Core.