Dr kynes is right about 99% of what he says. The 1% really fucks up his arguement.
So no Dr Kynes, the government stepping up and giving up collecting student loans from those who can't pay isn't a handout. It's not forcing the population to pay an extortion tax it commited fraud against, promising more bullshit only a few can achieve.
Fishin was a bust, water release from an upstream damn has sent me home so i gotta ask you some questions about this here post.
I did not ever assert that the government should send leg breakers over to an unemployed art history major's house and fuck his shit up, nor did i assert that they should all get even higher rates on loans they already cant pay back. I asserted that the government could (if they actually wanted to do something, which they don't) assume management of these loans themselves, and drop the interest rate to next to nothing, or forgive some loans, or even arrange for re-payment though public works, public service (tutoring at inner city schools perhaps) or military service, using revenues they already have in hand, but simply cutting something else. Just off the top of my head, decommissioning 1 of our 11 aircraft carriers would save well over $125 million a year (source:
http://www.rand.org/content/dam/rand/pubs/monograph_reports/MR948/MR948.appj.pdf), or dropping the National Endowment for the Arts, at a savings of $161 million annually (source:
http://www.nea.gov/news/news09/2010-nea-budget-request.html). either choice is a tough call, but we dont send representatives to congress or elect presidents to play golf and nail hookers. Cutting the Congress' golf and Hooker budget alone might be enough to solve the issues at question.
Alternately, the feds could END subsidies for new student loans (existing loans would still be extant) and drop it back into the gentle caress of the invisible hand of the market. Too bad subsidized loans for secondary education has become a "right" so eliminating them would be practically impossible.
Most importantly, the program at question is an increase in rates for new Stafford loans (existing loans would be unchanged) from 3% to 6% (still way better than the rate i got on my first pickup truck), not forgiveness for existing loans for people who cant pay them back. Student loans are one of the very few debts that cant be discharged by bankruptcy, and generally are more persistent than herpes (often received around the same time, yes I'm looking at you Chico State University)