Congressional Oversight Panel Chair Elizabeth Warren speaks at the Women in Finance Symposium, March 29, 2010. Photo provided by the Treasury Department.
Thanks to help from Senator Warren, as long as borrowers are making de minimis monthly payments on student loans, their credit scores won’t be hurt, reports James Freeman in the WSJ.
The upshot is that student-loan borrowers collectively are paying down a mere 1% of their balance each year, according to a recent Bloomberg News analysis. At this rate the U.S. Treasury’s existing student-loan portfolio wouldn’t be repaid for 100 years.
In what appears to be a dodge on more bad news on student debt in the future, Elizabeth Warren has proposed to “cancel debt for more than 95% of the nearly 45 million Americans” with student loans, continues Mr. Freeman.
Taxpayers will eat the losses, not the faculty and college administrators who have been gorging on all this subsidized education spending. Ms. Warren is coincidentally a former law professor and Forbes recently estimated her household net worth at $12 million.
Sen. Warren spent years demanding more subsidies and claiming that taxpayers would make a fortune off student loans. But it was all based on fraudulent Washington accounting that would land private financiers in prison.
With all the taxpayer money that continues to flow into education, one place not to expect a financial crisis is the Warren household.
From Forbes:
Teachers aren’t paid so poorly after all—at least not Harvard professors. Warren and her husband, Bruce Mann, both longtime instructors at the university, have built up a small fortune through years of teaching, writing and consulting.
Read more from James Freeman here.
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