Yes, there was, and yes, it keeps growing very year.
In 2010, Obama eliminated the federal guaranteed loan program, which let private lenders offer student loans at low interest rates. Now, the Department of Education is the only place to go for such loans.
Obama sold this government takeover as a way to save money — why bear the costs of guaranteeing private loans, he said, when the government could cut out the middleman and lend the money itself?
The cost savings didn't happen. In fact, the Congressional Budget Office just increased its 10-year forecast for the loan program's costs by $27 billion, or 30%.
What did happen was an explosive growth in the amount of federal student loan debt. President Clinton phased in direct federal lending in 1993 as an option, but over the next 15 years the amount of loans was fairly stable. The result of Obama's action is striking. In each of the past six years, federal direct student loan debt has climbed by more than $100 billion. (See chart.)
And since Obama keeps making it easier and easier to avoid repaying those loans, it's a problem that taxpayers will eventually have to shoulder.
Through words and actions, Obama has encouraged irresponsibility on the part of student borrowers. He constantly talks as if student debt were an unfair burden they unknowingly had foisted upon them.
Irresponsibility: A new report finds that 27.3% of student loans are delinquent. Why does this matter? Because thanks to President Obama, about $1 trillion dollars of student loan debt is... Read More
www.investors.com
04/16/2015
We can see the trend line right here.
Total Student Loan Debt by Year
- The total U.S. student loan debt balance has almost tripled in the past 15 years.
- In 2007, Americans owed about $545 billion.
- As of March 2022, the total student debt balance is almost $1.75 trillion.
The chart below includes student loan debt for federal and private student loans.
View attachment 67511671
Student loan debt has grown faster than the number of new borrowers and tuition rates. Find average student loan debt by year in our report.
www.bestcolleges.com
Undisputed.
See "The cost savings didn't happen." above.
While student loan costs can currently be borne by governments, these programs are likely to have growing costs as adoption increases and tuition growth outpaces inflation.
The US student loan system is unique in age, size, and scope. Since 1958, the US has had some form of federally sponsored student loan system. Since inception, college and borrowing have become much more…
theconversation.com
November 13, 2014
This is exactly what we are seeing now, and have been seeing. Note that 'tuition growth outpaces inflation', and the CBO estimated the costs of these loans over the course of 10 years upwards by 30%.
Now, Econ 101. What happens to prices of goods and services when there's more demand than there is supply?
Yes, growing far more than inflation ever was during these years.
So there's your price increase
The graphs is showing you the results of this feed back loop. I provided the dates which these articles were written. This isn't a problem that's all of a sudden happening, it's a problem which has been growing ever larger since it was warned about on those dates.
So, yes, the government took over the student loan business and royally screwed it up, and put the tax payer on the hook to foot the bill.