On March 30 2010, President Obama signed “historic student loan legislation” into law. The Education Reconciliation Act is intended to generate $61 billion in savings, by streamlining the student loan program and reinvesting the money to make college more affordable. Sadly, it is too little, too late.
Once a Great Nation
The student loan burden on today´s working population has already destroyed the economy, practically removed any last semblance of freedom in our workplace and just served to fatten the wallets of the bankers, lawyers and corporate suits that now run the country. The virtues that once made America a great nation have been abused by those entrusted with its care, and even $61 billion will not reverse the situation that we now find ourselves in.
In 1944, the GI Bill (“Servicemen´s Readjustment Act”) was enacted to help war veterans further their educations and, in turn, increase the number of employable persons in order to strengthen the U.S. economy. Throughout the next twenty years, improvements were made to this system through the National Defence Student Loan Program (1958 – aka Perkins Loan Program) and the Higher Education Act of 1965 – creating the Guaranteed Student Loan Program.
Although it would be easy to say that the rot set in with the founding of Sallie Mae in 1972, you have to acknowledge that they only exasperated later problems through their incompetence and greed. In 1972, people still worked their way through college, and Sallie Mae was established to simply facilitate loans to those who needed them, rather than lend any funds themselves.
No. The cause of all today´s problems are those pillars of education – the colleges.