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Christine O’Donnell’s Student-Loan Lies

September 29, 2010, 10:00 pm

In response to revelations that her LinkedIn profile features false claims about attending Claremont Graduate University and the University of Oxford, Republican candidate for the United State Senate Christine O’Donnell issued a statement through a P.R. firm alleging that other, unknown persons created her false LinkedIn profile back when she was a little-known cable news commentator/ex-anti-masturbation activist, and, moreover:

Perhaps a more important educational issue for Americans is the government takeover of the student loan industry, passed as part of the Obamacare law. This ill-conceived, unconstitutional government monopoly has thrown into jeopardy thousands of jobs in the private student loan industry. Even worse, now college students have nowhere to go for their student loans except the same people who brought them TARP and the embarrassing federal BP oil spill response. Will my opponent condemn his party bosses for threatening private sector jobs and eliminating student loan choice and competition for Delaware college students?

This is, of course, a pack of lies. The government “took over” the government student-loan program created by the government 45 years ago, when there was no private student loan industry. It didn’t take over the current private student-loan industry, which is still going strong. (Click here if you want a private student loan from Chase, here for Sallie Mae, or here for Citi.) The student-loan reforms are “ill-conceived” if you think transferring tens of billions of dollars from corporate welfare to low-income students is a bad idea. The student-loan reforms are “unconstitutional” if you live on the planet Mars. The TARP bank bailouts helped stave off Great Depression II and netted the taxpayers $7 billion in profit. I’m pretty sure the Department of the Interior doesn’t administer student loans.

I go back and forth on whether it’s even worth saying any of this. While I know many readers of this blog don’t agree with me on every issue, I assume that none of them suffer from any kind of debilitating mental incapacitation and as such recognize Christine O’Donnell’s opinions on student-loan policy for what they are. Then again, bloggers don’t always have the luxury of responding to subtle, finely wrought arguments, fun though that would be. Even the most transparently egregious falsehoods can take root in the collective consciousness, particularly when they’re endorsed by representatives of major political parties.

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15 Responses to Christine O’Donnell’s Student-Loan Lies

wilkenslibrary - September 30, 2010 at 7:49 am

Perhaps not so much a pack of lies as a reflection of limited intellectual capacity to understand federal law, finance, etc.

smerrill - September 30, 2010 at 8:30 am

Hanlon’s Razor:”Never attribute to malice that which is adequately explained by incompetence.” applies to Ms. O’Donnell. The problem is people are listening (and believing) her.

trendisnotdestiny - September 30, 2010 at 8:42 am

In reality, it appears to me to be both a mixture of incompetence and the generation of a “pack of lies”…. Someone is feeding her.

johnblee - September 30, 2010 at 10:05 am

Actually, in its earliest years the guaranteed student loan program was all private with colleges putting up the guarantee so that banks would lend to their students. This was limited to a few private colleges initially, but caught on quickly. Soon states became guarantors so that public college students could participate. This provided the model for the national program.

11270815 - September 30, 2010 at 11:38 am

A current and a former university president in Colorado (both of whom were US senators, and who must have known they were voting on federal funding for universities in programs like financial aid) came out a few weeks ago against “federal meddling” in state school operations. Maybe the Chronicle should do a story on just how much federal money goes each year to American higher education, and then ask politicians if the feds should go “Joe Miller” and “wean” the nation away from such support. Maybe the Chronicle could survey politicians and commentators to see how many of them were the beneficiaries of federal spending for higher education when they were young, or if they now are ashamed of themselves for having taken federal money at one time, only to have repented in later life.

dmeagher - September 30, 2010 at 12:03 pm

As I understand it, the student loan reform legislation ends the program that has required the federal government to pay banks and other private lenders to provide federally-backed loans to students, and to reimburse private lenders if students default on their loans. In other words, a lot of taxpayer money will be saved by ending subsidies to private lenders, and the savings will go toward increasing money available for Pell Grants. Perhaps O’Donnell and her ilk are merely uninformed, or perhaps so ideological in their opposition that they cannot admit that the federal government and a Democratic administration should get any credit. I would rather not think that such critics are disingenuous, but I suppose that is also a disheartening possibility.

dank48 - September 30, 2010 at 1:10 pm

Christine O’Donnell is a politician, which is to say that she’s a liar, a cheat, and a thief. She’s just more blatantly so than most. The Republican Party is going all out in this off-term election to try to get back the power that they have always used so responsibly. . . . Well, anyway, they’re trying to get back the power. “Tell the big lie” was good advice in the 1920s, and it’s good advice now, provided you aren’t hampered by conscience, daylight, or fear of punishment. To call O’Donnell a whore would be an affront and an insult to prostitutes.

ampreston - September 30, 2010 at 1:13 pm

Just the choice of the photo in this article shows a negative bias toward this candidate; regardless of the message by her or the author. Please focus respectfully on just the issues and have a nice photo of the candidate otherwise conservatives like myself have a hard time reading your views as a negative tone has already been established by the photo. Aloha!

kevincarey1 - September 30, 2010 at 1:40 pm

I don’t pick the photos, FYI, as is generally the case with art accompanying written work in large circulation publications.

mavprof - September 30, 2010 at 1:55 pm

ampreston: You’re right to fault Kevin Carey’s bias especially in his hit-piece intro (guess that’s supposed to nail down the claim of O’Donnell as liar–except the “ex-anti-masturbation activist” bit, which, admittedly, is crucial to the student loan issue). O’Donnell’s claims aside, there is legitimate opposition to the feds’ takeover of the student loan industry (not yet complete, but well on the way): lack of choice of lenders, poor servicing, yet more private jobs lost to the bureaucratic army at the public trough, and forecasts of increased default rates that call into question the administration’s estimates at supposed savings, among other reasons.

fsaj22 - September 30, 2010 at 3:03 pm

As someone who has worked in aid administration for 20 years, I find the comments made by Christine O’Donnell and Kevin Carey highly erroneous and inflammatory. Get your facts straight!The government “take over” of student loans was intended to save the tax payers money by ending federal subsidies to private lenders, but the measure has failed. The CBO was forced to use outdated figures to estimate the cost savings, which has now resulted in a Pell Grant shortfall for the foreseeable future. In addition, no one took the massive increase in aid applications (85% at my institution) into consideration. The government has yet to offer assistance to institutions for financial literacy, delinquency and default prevention, and skip tracing and loan collection costs—all of which were provided under the FFELP program by lenders, guarantors, and servicers.I would never compare the loan industry “take over” to the BP oil spill or TARP. Each issue deserves its own consideration, and must be placed into context. The student loan industry had issues, just like any other, but the issues were not going to cause massive environmental or economic collapse in the short-term. Congress should have taken more time to consider the most recent data, and above all, sought input from college aid officers—those that actually counsel and award students.

dopefein - September 30, 2010 at 4:47 pm

Funny, I recall that Ms. O’Donnell was sued by Farleigh Dickison U. for not paying her tuituion back in the mid-90′s. Wonder how that factors into her spurrious claims?Ms. O’Donnell has repeatedly just flat-out lied about her education background; she has been nearly caught in flat-out lies regarding her political campaign finances; and she has very questionable explanations for reconciling her past statements (“I was a witch” or “you should never masturbate” or “abortion is unacceptable even in cases of rape or incest”) with her current political platform.I highly encourage taking a gander at Ms. O’Donnell’s background — especially her ridiculous appearances on T.V. in the late 90′s as a self-professed Christian conservative. Funny, she sued one of her Christian conservative employers not too long ago for sexual discrimination and claimed that it came from, get this, their Christian conservative principles. Ms. O’Donnell reminds me of the the opportunists that climb over everyone on their way to the top — and there are lots of the in the Academy, as we all know. Nothing they say registers as a lie; it is all b.s., which as Frankfurt reminds us, is worse than lying, because they have no use or regard for the truth.

cwinton - September 30, 2010 at 7:13 pm

Pity poor Delaware if this part brain somehow manages to get elected. I suppose that if that happens South Carolina will celebrate, since it would put Delaware ahead of them for political representatives who are embarrassments.

purgatoryterrace4 - October 2, 2010 at 7:25 pm

Um…it’s Heinlein’s law, I think, from the science fiction writer Robert A. Heinlein.

miniirena - October 7, 2010 at 5:22 am

I absolutely agree with you that this is combination of a pack of lies.Irena from cheap hosting