Tuesday August 21, 2012
Now the FEDS are with holding SS payments on recipients that have not paid their student loans. In some cases these are grand parents that borrowed to help grand kids.
I have repeatedly warned that the Student Loan Crisis would be one of the factors in the next market meltdown. This has a parallel in the previous era of stagnation from 1966-1984. Then many young men fled to Canada rather than 'pay their fair share' by being drafted into the Viet nam War. This conflict was resolved when Jimmy Carter gave them all amnesty allowing them to return home without penalty.
This is emblematic of the fight for survival that is coming. My concept of the New Civil War has pitted the North against the South. Now the Federal government becomes a third player. No end of fronts in this war.
Here is another instance of a student asking Romney and Ryan about student loans. Ryan notes that tuition is increasing at double the inflation rate. See our post on Re thinking College for some genuinely fresh ideas on what to do about the problem.