Banking & Financial ServicesF

The Student Loan Bubble Looks like “Déjà Vu”

Higher education is following the same pattern that housing did in the lead up to the 2008 financial crisis. Just like in housing during the previous decade, a student lending “bubble” is now being inflated by heavy federal interventions that could have severe unintended consequences.

Banking & Financial Services Legislative Alerts

After Fannie and Freddie: PATH and Corker-Warner

August 12, 2013 J

Last Tuesday, President Obama unveiled his new housing plan to a cheering crowd in Phoenix, Arizona—one of the cities hit hardest by the housing crisis. To the surprise of free-market enthusiasts, President Obama called for the gradual shuttering of Fannie Mae and Freddie Mac, even declaring, “I believe our housing market should operate where there’s a limited government role and private lending should be the backbone of the housing market.” Right now there are two bills in Congress, the Corker-Warner bill that President Obama supports and a bill from Rep. Jeb Hensarling championed by House Republicans. Beyond the rhetoric, what are the major differences between the two plans? Here is a breakdown.

As Interest Rates Double, We Need Less Gov’t, Not More

July 01, 2013 J,

Borrowing costs for as many as 7 million students who use federally subsidized Stafford loans will increase abruptly if Congress does not change existing law. Many have criticized Congress for allowing this rate reset to happen, but few recognize a more serious underlying problem surrounding this issue. Rather than calling for more knee-jerk legislation, the public should question why the government is so deeply involved with higher education funding in the first place. The reality is that government loans are a root cause for skyrocketing tuition prices, massive student debt, and high undergraduate unemployment.

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