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Obama to nationalize student loans, how does that work in New Zealand?

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Story from CNS News. (H/T Gateway Pundit)

Excerpt:

A bill currently before the Senate would empower the Obama administration to nationalize the student lending industry, eliminating the federally subsidized private loans millions of university students rely on to finance their educations

The Student Aid and Fiscal Responsibility Act – currently being considered by the Senate Health, Education, Labor, and Pensions (HELP) Committee – would eliminate the Federal Family Education Loan (FFEL) program. FFEL loans are federally subsidized and make up approximately 80 percent of the student lending industry.

According to the Department of Education, 14.3 million of the 17.5 million student loans were federally subsidized for the 2009-2010 fiscal year. Under Obama’s plan, the government would consume the entirety of this industry – a total of $103 billion in 2009-2010.

I wrote about the situation in New Zealand before. In New Zealand, they have a government-run system.

Excerpt:

Thousands of people with student loans are defaulting on payments, leaving the Government to chase hundreds of millions of dollars.

More than one in five borrowers – or 114,000 people – have overdue payments and thousands of students are leaving tertiary education with no qualification and big bills.

The Education Ministry’s student loan scheme annual report shows that $306 million in payments is overdue, a $100m increase from a year ago.

The substantial growth includes a big rise in the level of payments owed by people now living overseas, more than doubling to $114m.

New Zealand University Students Association co-president Sophia Blair said it was not surprising that students with loans were heading overseas and letting the bills mount. “You can earn higher wages [overseas].”

[…]Total student loan debt had reached $10.2 billion and is predicted to grow by an average of $875m a year to more than $20b by 2022.

The report also showed about 39 per cent of students who left tertiary education with a loan did so without achieving a qualification.

About 8000 students with loans who left study in 2005 had nothing to show for it by 2007.

Why can’t Obama take into account how radical leftist policies have worked in other countries? Let the free market work. Let people be responsible for their own decisions. Giving people things for free doesn’t make them take their education seriously. When someone pays out of pocket, they try harder, and they take serious courses to earn the money back. When a bank makes a loan, they actually care about getting the money back, so they may insist that students actually perform. On the other hand, the government is notoriously wasteful – it’s not their money. It’s your money.

News

New York governor unveils one BILLION dollars of new taxes

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Story from CBS News. (H/T ECM)

Excerpt:

Governor David Paterson said Tuesday that the days of profligate spending in Albany are over and that starting immediately lawmakers must participate in an “age of accountability.”

That said, the governor’s new budget has $1 billion in new taxes and nearly $800 million in cuts for New York City.

[…]”Our revenues have crumbled and our budget has crashed and we can no longer afford this spending addiction that we have had for so long,” Paterson said.

[…]”The mistakes of the past have lead us to the breaking point,” Paterson said.

But in addition to the severe belt tightening, the governor said he would need to raise $1 billion in new taxes and fees — some politically controversial.

* A $1 increase in the cigarette tax, raising the state tax to $3.75.

* A new soda tax that will cost consumers 1-cent per ounce — a 16-ounce bottle will cost 16 cents more, a 64-ounce bottle 64 cents more.

* The governor also plans to legalize and sanction cage fighting.

* And allow wine to be sold in grocery stores.

* And introduce 50 speed cameras on highways to catch unsuspecting motorists with fines of up to $100.

How did this happen?

New York legislators voted to tax the wealthy.

Then the wealthy left New York for red states.

And now Albany has no revenues to pay for all of their government spending on social programs, such as paying delinquent teachers to do nothing all day because the teacher unions won’t allow teachers to be fired, no matter how badly they screw up.

Governor Patterson never wanted anything to do with earlier tax increases on the wealthy. At least these new tax increases are on consumption, not on income, and not on corporations. Consumption taxes cost the fewest jobs, in my opinion. Consumption taxes encourage saving, too.

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Obama’s TSA nominee withdraws after lying to Congress about abuse of power

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Story from Yahoo News.  (H/T Ed Morissey of Hot Air)

Excerpt:

The Obama administration’s choice to lead the Transportation Security Administration withdrew his name Wednesday.

In a statement, Erroll Southers said he was pulling out because his nomination had become a lightning rod for those with a political agenda. President Barack Obama tapped Southers, a former FBI agent, to lead the TSA in September but his confirmation has been blocked by Republican Sen. Jim DeMint, who says he was worried Southers would allow TSA employees to engage in collective bargaining with the government.

Questions have also been raised about a reprimand that Southers received for running background checks on his then-estranged wife’s boyfriend two decades ago. Southers wrote a letter to lawmakers earlier this month acknowledging that he had given inconsistent answers to Congress on that issue.

Ed Morrissey writes:

There were at least three reasons why Southers’ nomination was going nowhere in the Senate.  When Congress created TSA and the Department of Homeland Security, it exempted both from labor laws that allowed unions to organize the workers, in order to avoid having labor problems disrupt national-security efforts.  Southers was seen as an appointee who would push for unionization by Senator Jim DeMint, among others, who held the nomination in order to get clearer answers from the Obama administration on their intentions.  That hold got lifted shortly after the Christmas Day bombing when the Obama administration complained that the Senate had prevented Obama from providing leadership to TSA, but Obama had taken eight months to nominate Southers in the first place.

It was at that time that Southers finally admitted that he had misled Congress during his confirmation process on his involvement in breaching privacy laws to investigate his wife’s boyfriend.  That involved two issues of trust: accountability to Congress and the security of private information being held by the government.  Not only did Southers himself twice breach the data, he also disseminated it — which is a felony, although long past the statute of limitations, presumably.  The Senate should not look kindly on appointees who begin their jobs by lying to Congress, and multiple holds replaced the DeMint hold as a result.  That has nothing to do with “political agendas,” but with Southers’ suitability for the job.

Another one bites the dust. Here’s a few of the previous failures.