Get government out of student loans

The Chicago Tribune reports:

To boost minority college enrollment, the Obama administration has proposed lending money to more families for school.

Since so many students are maxing out what they can borrow under their own names, this proposal would reduce restrictions for parents who borrow money from the government on their children's behalf: Only the past two years of parents' credit history would be checked instead of the current standard of five. Delinquent debts below $2,085 would be overlooked.


These PLUS loans already are borderline predatory. Parents can borrow up to the sticker price for tuition. Interest rates set by Congress have reached as high as 8.5 percent. If you can't afford the payments, not to worry; you can stretch them out over a quarter-century.

Uncle Sam: the debt pusher man.