UPDATED: INFOGRAPHIC: The Student Loan Leviathan
Student Loans, Gateway Drug to Debt Slavery: How we got here; and how it fits in with out-of-control tuition prices.
Note the Obama boosting towards the end: “Obama’s changes are big wins for the government and taxpayers…all loan profits that used to go back to private lenders, now go back to the government.”
That doesn’t mean they’ll go back to taxpayers, though. I doubt very much Obama will cut taxes so as to reflect this putative windfall to government. And what’s wrong with profits going to private lenders? It was their money to begin with. What were they supposed to do? Lose money?
Something else the authors don’t mention is that Sallie Mae was a government-sponsored enterprise – like Freddie Mac and Fannie Mae – until a few years ago.
Ultimately, though the infographic doesn’t quite spell it out, it does make evident that out-of-control tuition prices – like the increasingly poor quality of a higher education – are a government-created problem.
Related content at Instapundit: Is the Higher-Ed bubble about to burst?
UPDATE: The original source of the infographic is here, where it’s a lot easier to read.
