So there's this game called telephone. Herman Cain says, "Student Aid should be decided by the States, not by the Federal Government." Then Bachmann and Gingrinch agree by saying, "Student Aid is Ponzi Scheme."
Wait, wha? Ponzi Scheme (nice flash pan word usage there). Look the economy sucks, and for those who took out $200,000 dollars for a B.A. in Womyn Studies with a minor in Art History (A Feminist Traveling Art Show could be profitable) should be on the agreed upon (both sides in Congress) income based repayment plan (10% of earnings for the next 20 years to have the debt discharged, previously 15% of earnings for the next 25 years to have the debt discharged) or the person would be paying close to (if the debt is consolidated) roughly around $3,000 a month for the next ten years. Furthermore, Federal Student Loans cannot be discharged through bankruptcy (only in "Iron Lung" cases can Student Loans be discharged).
Do all students have $200,000 dollars in loans...no? The average amount of student debt is around $25,000, which is doable...(Engineers, Nursing, Computer Science -- who can find work in their field after graduation [really 3-5 years of job experience for most postings, no entry level until a person interns for free for two years...). And when Student Loans were discharged (1990's where there was a 20% default rate) only 1% of those who took out student loans declared Bankruptcy).
So now if the Federal Student Loan program is disbanded (program disbanded, not the loans), students would have to rely on either a] State Student Loans (American Dream Act -- I would like the idea if there were more Grants and Scholarship opportunities rather than strapping for illegal immigrants for a huge amount of debt) or b] Private Loans *shudder* (Really, miss one payment = default...or rather, these loans are cannot be consolidated with Federal Loans).
Look the Federal Loan program is not perfect (personally, I would tear down the Department of Eduction IF the money saved from the destruction of department goes back into education TO LOWER TUITION, THE HIRING OF MORE TENURE TRACK FACULTY AND more importantly THE RESTRUCTURING OF HIGHER EDUCATION [no, not a better football field, no, not to pay administrators or hire more adjuncts, no more push for "the life of the mind" without having a community to support and pay for those minds].
Also, by saying the government is running a Ponzi scheme (Social Security, Medicare, Medicaid, Student Loans), but then bailing out themselves and the banks who run these schemes -- essentially these nominees (those who served as Governors and Congressmen) are being very transparent...We've run this scheme, were a part of it, and, well, we might tear down the system (look up private loans) or we might continue to endorse these schemes since it's profitable,