The Parent PLUS Loan Shell Game

LongPrime
Fri, 28 Jan 2011 14:05:57 +0000

13:

Think you better 'splain yourself, LP. WTH does patriotism have to do with borrowing? As long as you plan on paying it back, it’s win-win, right?



Thanks, JRZMom, for explaining.

I will add that BC liberalized the programs to encourage market competition on the model of Freddie/Fannie. GWB added his cronnies to the DOE. Congress allowed the system to continue to 10s of billions $$$$ until the D’s restructured the system in early 2006 and again in 2009.

Lenders were guaranteed by the DOE, 6.5% for stafford and 8.5% for PLUS and similar for consolidated. We won big as did the lenders, but the taxpayer is paying even more. Like I said, I tried to be Patriotic, in not borrowing as much as we could have.