Surprise: Obama Trying To Tack On Student Loan Nationalization To Health Care Nationalization

They’re going to cram the health care takeover down our throats anyway. So why not go for the gold and tack on a student loan nationalization too while they’re at it?

Of President Obama’s three big takeovers—cap ‘n trade, health care, and higher ed—higher ed has garnered the least public attention. That may change now that the administration is attempting to impose its wishes by legislative trickery.
The health care bill that the Democrats hope to pass by “reconciliation” to avoid the normal Senatorial voting procedure is now being amended to include the administration’s Big Grab on federal student loans. If this works, we will have one bill in which the federal government not only takes primary control of American health care but also simultaneously takes practical control of American higher education.

Obama Education Secretary Arne Duncan recently had an op/ed in the Grand Forks Herald backing his boss’ plan to nationalize student loans. The headline was, “Investing in students, not bank profits.” Which is an interesting statement.
First, why shouldn’t banks profit from student loans? They’re providing capital investment into the education of a given person with the expectation that their investment be repaid with interest upon the education of that person. They’re providing a service, and they should profit from it so that they can go on providing that service to other students.
Obama said recently that he is a “fierce” advocate for a “thriving, dynamic free market.” Well profits are a part of that free market.
Second, if we really wanted to invest in students, why not focus on vouchers? Both Secretary Duncan and Obama have opposed vouchers which represent true investment in students by empowering them to seek the best education possible rather than controlling their education for them. Which is what Obama and Duncan are proposing with their take-over of student loans.
I’ve often pointed out that, here in North Dakota, if we stopped subsidizing higher education and privatized our state colleges we could divert that funding into a higher education voucher for each and every graduating high school senior to the tune of $44,000.
Now, I’d argue that by making higher education an entitlement we’re devaluing a college degree, but if we’re going to subsidize higher education isn’t that a better way of doing it?
As usual, the solution here is less government. Not more government.