Today, the Education Department has an eye-popping $740 billion in outstanding loans, making it the government's second biggest lender after the Federal Housing Administration.
To make matters worse, Obama started making it easier to repay the loans — or more appropriately, not repay them. In 2011, he announced a "pay as you earn" program that lets borrowers set monthly loan payments at no more than 10% of their discretionary income. And after 20 years, the government eats whatever's left.
That's what's behind the current shortfall, which threatens to get much bigger if the program isn't reined in. Barclays Capital warns that the program could wind up $250 billion in the hole over the next decade.
Read More At Investor's Business Daily: http://news.investors.com/ibd-editorials/020515-738158-student-loan-program-faces-a-massive-funding-shortfall-webhed-obamas-student-loan-program-is-22-bil-in-the-hole.htm#ixzz3QxzT3N3i
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