Political Quotes

“Mr. President, student debt is a big and growing concern for millions of American graduates. As we look at ways of addressing this problem, it is important to keep in mind that about 90 percent of that debt is owed to the Federal Government. The Federal Government currently holds more than $1 trillion of student loan debt. That makes the U.S. Department of Education one of the country's largest lenders. As such, any solution to the debt problem needs to examine the Federal Government's lending practices. Federal banking regulations require commercial lenders to confirm a borrower's ability to repay the loan. Federal student loans are given without a credit check or any analysis of the student's ability to repay the loan in the future. This is intentional, since many prospective college students have no credit and little or no income, but it also puts all the burden on student borrowers to make sure they don't borrow more than they need. As a Nation, we have accepted that it makes moral and financial sense to assist low-income Americans in accessing higher education opportunities, and we do that to the tune of billions of dollars through Pell grants, subsidized student loans, and other student aid programs. However, while need-based Federal student aid is vital to help students who could not otherwise afford to attend college, students are able to borrow well in excess of their financial need and potentially in excess of what they will be able to repay.…”