Sunday, September 20, 2009

Secessionist Texas Big on Student Loan Defaults, Big on Government Handouts

Like the previous posting, Texas is starting to look like the nations biggest state con artist. The image of independence and self reliance is an utter lie, and I'm starting to like the idea of allowing Texas to secede, something that could save the rest of the country a real bundle of money. Take the AP headline "Texas second in nation on student loan defaults." It only scratches the surface:

"The Texas default rate, over the latest three reporting periods, climbed from 5.8 percent, to 7.1 percent, then to 9.3 percent."

"The department (of Education) says schools with excessive default rates may lose eligibility from one or more federal student aid programs."

"Those who attended for-profit schools are most likely default on loans. In Texas, the latest rates are 16.5 percent at for-profit colleges, 7.7 percent at public colleges."

This all came about because of two things: Texans are economically depressed, and the state relies on federal money for help.

"One reason for the higher default rate for Texas was the state has a greater share of low-income students, who could have more trouble repaying loans. Texans also have to rely more on federal loans because the state offers relatively less aid."

And less aid to its own state residents means more of the nations taxpayers picking up the tab. Thank you Gov. Perry.

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