Study: 44% of social security users say "No, I have not used a gov. social program."

[Ronin]

Tea Party embraces keynesianism now

The Rise of Tea Party Keynesianism
Spending money on defense is good because it creates jobs and stimulates the economy -- wait, what?!

the corporate masters that started the whole thing have pulled the leash it seems.

[Major Robert Dump]

I would say that a student loan absolutely is welfare if the capital sum comes from a government source. The fact that it has to be paid back is irrelevant IMO. You don't have the money, the government provides the money.

It doesn't come from a government source. Student Loans come from banks, like Sallie Mae, not the government. The government just "backs" the loan up by promising the bank they will buy the debt if the borrower turns out to be a doucehbag, therefore the bank is more likley to give the loan to undeserving borrowers because there is little or no risk involved for the bank.

That's what people seem to not understand about the US Governement: They don't pay for stuff like this themselves, they always include a bank, that way some honest, hardworking, starving banker can make some money. Obamacare doesn't pay for people's healthcare, Obama pays insurance companies to pay for somoenes healthcare, that way some honest, hardworking, starving insurance agent can make some money. Stimulus funds work the same way.

[Slyspy]

It doesn't come from a government source. Student Loans come from banks, like Sallie Mae, not the government. The government just "backs" the loan up by promising the bank they will buy the debt if the borrower turns out to be a doucehbag, therefore the bank is more likley to give the loan to undeserving borrowers because there is little or no risk involved for the bank.

That's what people seem to not understand about the US Governement: They don't pay for stuff like this themselves, they always include a bank, that way some honest, hardworking, starving banker can make some money. Obamacare doesn't pay for people's healthcare, Obama pays insurance companies to pay for somoenes healthcare, that way some honest, hardworking, starving insurance agent can make some money. Stimulus funds work the same way.

So without the government backing the student loan would be unavailable or on less friendly terms?

Edit:

Has Sallie Mae always been a private company?

[Tellos Athenaios]

It doesn't come from a government source. Student Loans come from banks, like Sallie Mae, not the government. The government just "backs" the loan up by promising the bank they will buy the debt if the borrower turns out to be a doucehbag, therefore the bank is more likley to give the loan to undeserving borrowers because there is little or no risk involved for the bank.

Ah. So that is different from student loans as we know it over here, which are directly paid out by the government, and likewise the interest on the borrowed money ends up on the government balance sheets. And no, I don't see why anyone would do it any other way. Seems like it merely serves to introduce overhead, and make the whole thing worse by going through the private sector for this.

[Tuuvi]

It doesn't come from a government source. Student Loans come from banks, like Sallie Mae, not the government. The government just "backs" the loan up by promising the bank they will buy the debt if the borrower turns out to be a doucehbag, therefore the bank is more likley to give the loan to undeserving borrowers because there is little or no risk involved for the bank.

That's what people seem to not understand about the US Governement: They don't pay for stuff like this themselves, they always include a bank, that way some honest, hardworking, starving banker can make some money. Obamacare doesn't pay for people's healthcare, Obama pays insurance companies to pay for somoenes healthcare, that way some honest, hardworking, starving insurance agent can make some money. Stimulus funds work the same way.

Actually, the US government ended the Stafford loan program and replaced it with Direct loans, which come directly from the government. They also bought up any stafford loans that had been taken out before they started doing Direct loans.