Republican Senatorial candidate Peter Schiff criticized the current student loans program in the United States and believes the President's latest bill will make the problem much worse.
Peter Schiff, Senatorial candidate for the state of Connecticut and President of Euro Pacific Capital, doesn’t think it was a good idea for President Barack Obama to overhaul the student loans program, according to the Hartford Courant.
The student loans overhaul, which was included in the recently signed health care reform legislation, will remove commercial banks from providing loans to students who attend a college or university. Proponents of the measure say the bill will save $68 billion in taxpayers’ money over the next 10 years.
However, the 47-year-old author of “Crash Proof 2.0” disagrees because the President’s solution, says Schiff, to the government created problem will be exacerbated and a lot worse.
“Loaning directly to students while reducing the amount a student is required to repay will actually encourage colleges and universities to increase tuitions even faster, as students will be more willing to assume larger debts which they are not legally required to repay,” said Schiff.
Schiff, who foresaw the current economic collapse in the U.S., added that the costs of student loans will rise and the cost to taxpayers will substantially increase as they pay for inflated tuition costs and take on losses on defaulted loans.
Despite being third place in recent polling for the Republican nomination in Connecticut, behind Linda McMahon and Rob Simmons, Schiff, reports the Greenwich Times, would put a “million bucks” on himself “20 to 1.”
“Scott Brown was a longshot. Who thought he was going to win?"