Federal Student Lending Swells

The federal lending program designed to make college education available to everyone is creating a pile of debt so large it is fanning worries that it has become too easy to borrow too much.

U.S. student-loan debt rose by $42 billion, or 4.6%, to $956 billion in the third quarter, the Federal Reserve Bank of New York said Tuesday. Overall household borrowing fell during that period.

Payments on 11% of student-loan balances were 90 or more days behind at the end of September, up from 8.9% at the end of June, a rate that now exceeds that for credit cards. Delinquency rates for all other consumer-debt categories fell or were flat.

Nearly all student loans—93% of them last year—are made directly by the government, which asks little or nothing about borrowers’ ability to repay, or about what sort of education they intend to pursue.

President Barack Obama championed easy-to-get loans during the campaign, calling higher education “an economic imperative in the 21st century.” A spokesman for Education Secretary Arne Duncan said the goal is “to make student loans available to as many people as possible,” and requiring minimum credit scores would block many Americans from going to college.

Read more at Wall Street Journal

Comments

Polititainment

Billy Joel: Obama smoking story 'untrue'

After a report emerged from a source for The Hill newspaper that Joel on a trip to Washington, D.C., claimed that he recently smoked a cigarette with President Obama, the musician is now denying the story.

Pharrell: Brown's actions 'bully-ish'

Musician Pharrell Williams said in a recent Ebony magazine interview that President Obama "should have gone down" to Ferguson to address the situation.

Billy Joel smoked with Obama

According to one of The Hill's sources, Obama invited Billy Joel to have a cigarette with him when the musician made a recent trip to the White House.

Beckham's catch = Obama's executive act

You know it is.

'SNL' remakes Schoolhouse Rock
“Saturday Night Live” hit today’s political process right on the nose during the show’s cold open. Spoofing Schoolhouse Rock’s “I’m Just a Bill,” Kenan Thompson as the bill tried to explain how he becomes a law. But before he can make his way  to President Obama’s desk to be officially signed into law, Obama beats him […]

White House

White House claims Obama is ‘not a media critic’

The White House doesn’t really seem to have a problem contradicting itself, so maybe this latest whopper shouldn’t surprise us.

Obama uses turkey pardoning to joke about his executive action on immigration
This is one executive action President Obama is sure won’t ruffle Republicans’ feathers. In fact, he’s so sure of that fact that he decided to make a joke during the annual turkey pardoning referencing his unprecedented use of executive action to grant amnesty to 5 million illegal immigrants. “I’m here to announce what I’m sure will […]
Poll: Americans split on Obama’s immigration order
Americans are sharply split on their reaction to President Barack Obama’s recent executive actions on immigration that will essentially give amnesty to about five million undocumented immigrants,according to a new poll. The latest Quinnipiac University survey released Tuesday found that 45 percent of voters support the president’s move, while 48 percent opposes it. Support for […]
Eric Holder stresses that federal investigations in Ferguson are not over

Attorney General Eric Holder released a statement Monday night assuring rioters that the Justice Department still has two investigations to complete in Ferguson.

Obama appeals for calm after Ferguson decision

WASHINGTON (AP) — President Barack Obama appealed for calm and understanding in Ferguson on Monday after a grand jury decided not to indict in the death of Michael Brown, pleading with both residents and police officers to show restraint.

Congress

Pelosi and Obama versus Schumer and America

This is like one of those times a member of a professional wrestling posse turns heel on national television and sets off the drama.

Rand blames 'politicians,' drug war in Ferguson

Sen. Rand Paul’s Time op-ed on Ferguson Tuesday blamed politicians for creating “a culture of violence” through the War on Drugs, and urged Ferguson protesters to “channel your frustration in ways that will make a positive change.”

Why are House Members exempt from ethics training?
Two U.S. representatives are questioning a curious practice on the Hill that exempts House Members from ethics training. But it doesn’t look like they are getting much support from their colleagues that enjoy this perk. Reps. David Cicilline (D-R.I.), and Scott Rigell (R-Va.), are urging congressional leaders to end the House exemption on the annual ethics […]
Paul calls for formal declaration of war on ISIS

Sen. Rand Paul wants Congress to formally declare war against ISIS.

The fallout from Boehner not owning a dog

President Obama's offer to smooth over an immigration reform compromise with Speaker John Boehner has turned out to be a case of barking up the nonexistent tree.