You… must be joking. (via SayUncle):

Last spring there was a story going around the blogs concerning a solicitation to buy from the U.S. Department of Education for 27 short barrel shotguns.

Now we know what they planned to do with them. They went to their SWAT Teams for use in collecting student loans.

Click the link and watch the video.

Setting aside the fact that SWAT raids are being used for increasingly minor, non-violent offenses, there’s an economics story to this, too. Part of the reason that we are in a higher education bubble is because it’s so easy to get student loans to go to college. But those loans are so easy to get because the banks are so willing to make student loans, since they have so many ways of making sure the loans get paid back.

Strengthening the ability of banks to prevent people from defaulting on student loans will, necessarily, make them more willing to make marginal loans since they can make sure they get their money one way or another. This will just fuel the bubble, and result in more people going to school and ending up with debts they can’t repay.

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