Union Leader Editorial
Don't think the Obama administration and the Democratic Congress are trying to replace privately-run enterprises at every turn? Perhaps you missed last week's news of more layoffs by the New Hampshire nonprofit that arranges and administers college loans to families.
Under the laughable claim that a federal takeover of these loans will "reduce'' their costs and rescue people from greedy lenders, Obama and friends passed and signed a law last spring that ended private origination of Federal Family Education Loans.
These loans will now be overseen by federal workers in the behemoth known as the U.S. Department of Education.
Not only is this unlikely to reduce costs, it is clearly reducing jobs in the private sector. The New Hampshire Higher Education Assistance Foundation has laid off 35 positions lover the last two months. NHHEAF is hoping it will qualify for some federal work under the new government program, but the feds haven't said when the New Hampshire group might even be able to apply.
Even the non-profit NHHEAF may have become more of a bureaucracy than was necessary in a world of constantly increasing education costs. But it at least wasn't the government, "here to help you.''
America's capitalism is being slowly immersed into what is becoming an ever-thickening stew of government socialism.
When we are in up to our necks, it will be too late to get out.
Really? The FFELP is already a government entity - NHHEAF was just a middleman living on the backs of students and on taxpayer subsidies.
ReplyDeleteThe NHHEAF was not privatized, the FFELP simply eliminated an inefficient and unnecessary middleman. Let's see - the middlemen bribed Financial Aid officers - officers at Columbia, U Texas, USC, Emerson, Columbia, Johns Hopkins, and others were fired for taking the kickbacks.
And who's laying people off? Well that would be the decision of the CEO - in the Case of NHHEAF, that's Rene Drouin. In the CBS News report Below - Mr. Drouin is cited as one of many Education "professionals" with "fake degrees." Schools Mr. Drouin lists as his "alma mater" have been shut down by state or federal authorities for being unaccredited diploma mills. (Mr. Drouin also claims a law degree from LaSalle - the reputable LaSalle Univeristy in PA opened in 2006 awarding their first degree last year; however, the LaSalle diploma mill in Louisiana that was shut down by Federal Authorities did offer law degrees)
http://www.cbsnews.com/stories/2004/05/10/eveningnews/main616664.shtml
Mr. Drouin's is also a subject of scrutiny for his pay being so high despite the NHHEAF (a "non-profit" organization) being a tiny player among the student loan middlemen.
http://www.newamerica.net/blog/higher-ed-watch/2009/guaranty-agency-compensation-12515
Of course, extreme compensation is common in these taxpayer subsidized entities, Albert Lord, CEO of Sallie Mae is building himself a private, 18 hole golf course - when he's not jetting around on Sallie Mae's three corporate jets.
I guess that's what the Union Leader supports - taxpayer subsidies for people with bogus degrees with excessive compensation. Not to forget the kickbacks, golf courses, corporate jets, etc. Nice position Union Leader - you've defended it how?