Sugar Daddy Obama to Forgive Student Loans
In April, we noted a bid by former students of Corinthian Colleges, a for-profit higher education company, to stop paying their loans on grounds they had been defrauded. Corinthian went out of business and its graduates are having trouble finding work. But they found an ear at the White House. Secretary of Education Arne Duncan announced Monday a new program to forgive the loans of students of Corinthian or other schools that are found to have defrauded their students. The effort to set things right and make these defrauded students whole may be honorably intentioned, but the cost to taxpayers could be immense. If all 350,000 Corinthian graduates over the last five years applied for relief, the tab could reach $3.5 million. And that doesn’t count previous Corinthian students or students of other for-profit colleges. One gets the feeling the door has been opened for a massive new entitlement, especially given how far the federal government is already involved in student lending. Indeed, Duncan said as much: “This is our first major action on this but obviously it won’t be the last.” Because who could say no to helping those in need?