October 26, 2011, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement condemning Obama Administration proposals to weaken government student loan and mortgage programs without any congressional authorization:
"Obama is changing the social contract, and the 49 percent of Americans who pay income taxes, pay their bills, and provide for their own families are being treated like fools. If the government is just going to sweep in and bail out every borrower with taxpayer money, why should anyone pay?
"By radically changing the terms of government-backed student loans and mortgages, it has the effect of costing the programs billions of dollars that is added to the national debt without any congressional authorization. No president should have the power to willy-nilly add to the debt to bail out favored constituencies no matter how desperate he is to be reelected. Congress should act to rein in this abuse as soon as possible."