Obama Just Made the Student Loan Program a Student Gift Program (With Your Money, Of Course)
Posted by Jim Hoft on Tuesday, March 30, 2010, 6:21 AM
Hey Kids… Don’t Worry About Your Student Loans, Uncle Obama’s Going to Pay Those, Too.
Barack Obama tripled the national deficit his first year in office. It will be larger this year.
But, that won’t stop him from handing out more “free” money.
Under the democrat’s new plan to bankrupt America, students will only have to pay 10% of their discretionary income on their student loan and after 20 years the government will pay the rest off.
FOX Blogs reported, via Free Republic:
Starting July 1st, when the government issues student loans, it will bypass the banks who have traditionally provided them, and directly target borrowers.
A White House press release spells it out this way, “[A]ll new federal student loans will be direct loans, delivered and collected by private companies under performance-based contracts with the Department of Education. According to the non-partisan Congressional Budget Office, ending these wasteful subsidies will free up nearly $68 billion for college affordability and deficit reduction over the next 11 years.”
But some in the President’s own party say eliminating the middle man also equals eliminating jobs.
But the President’s focus today will be more about what the bill does than what it does not.
He will also talk about the provision’s less controversial expansion of Pell Grants, as well as supporting historically black and minority institutions and caps on student loan repayments.
According to the White House, “New borrowers who assume loans after July 1, 2014, will be able to cap their student loan repayments at 10 percent of their discretionary income and, if they keep up with their payments over time, will have the balance forgiven after 20 years.”
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Busted!… Obama Headlined a DEMOCRAT SOCIALISTS OF AMERICA Event in 1996 **FLIER**
Published May 24, 2012 at 8:46 pm - 72 Comments
Freddy commented:
Obama does not read history!
The reason that private companies were managing student loans for the government was the FRAUD of the 70′s! At that time, with the government running the loan program, it was actually the Universities that systematically STOLE, through bureaucratic methods, billions of dollars!
Expect this lesson to be repeated.
Lily commented:
Well, good. I’ll keep the money I saved for my daughter’s education and spend it on myself. The suckers, I mean taxpayers, can foot my daughter’s tuition costs.
DJ commented:
This is the definition of fascism.
The state control of industry.
——————————
Universities will inflate prices because there is nothing to stop them!
Where else can you go?
chris commented:
“….delivered and collected by private companies under performance-based contracts with the Department of Education.”
Perfect for Community Organizers looking for a stream of income.
Who defines and calculates “discretionary income?” I have yet to see that on my IRS forms and have never used this concept when applying for a line of credit, mortgage or loan.
But, having said that, the ongoing, government created housing fiasco has captured the spirit of the concept with numerous attempts being made to shovel out billions of taxpayer money to adjust mortgage payments to whatever a deadbeat feels like they can handle regardless of contractual terms. Good old community organizers and scamsters take a cut ($1550 or more) for dragging the non payer in for counseling and re-documentation. Why do 60% of re-documented loans end up in default within the year?
down with dems commented:
I saw this on Glenn Beck a while ago and it is disgusting.
Go to an expensive school, take out huge loans, pay back a fraction, and have the balance forgiven.
What is that teaching??? Certainly not proper borrowing/lending practices. Certainly not responsibility.
Freebieville here we come…
… except someone always has to pay for the freebies. But the people GETTING the freebies are a great source of votes.
DougO commented:
Just an issue of definitions here. When they say 10% of “Discretionary” income. Are they saying that after I have paid for my housing, food, clothes to work, car to get to work and my insurance that I only have to pay 10% of THAT amount?
(this reminds me of paying my tithe… is Obama == God?)
gail commented:
Lily, my thoughts exactly. I’m sitting here at my university office with my freshman daughter and telling her that we are going to need to “math this out…”
down with dems commented:
Kill the old folks that are so expensive to care for and give the kiddos free health insurance and forgive their student loans, grant all illegals amnesty and include them in free health care, abort the babies from the most unproductive elements of society… it’s the creation of a huge socialist Democrat-voting army, and anyone who can’t see it is blind.
Ladue Pundit commented:
What will the cost of this program be? Was in in the CBO score? Must it be funded annually like the health care debacle?
Another thing for patriots to rescind when they take the country away from these socialist usurpers.
olm commented:
Ha, so let me get this straight. I can go get a Harvard degree or degrees in English and anthropolgy and have it paid for by Uncle Bambi because I’ll never be gainfully employed.
Opaobie commented:
No, olm, MINORITIES and ILLEGAL ALIENS can “go get a Harvard degree or degrees in English and anthropolgy and have it paid for by Uncle Bambi because I’ll never be gainfully employed.” The rest of us just get to PAY for it through taxes. But you’ll be pleased to know a great many more “minorities”-friendly colleges and universities have been added to the list of those eligible for the student loans, while not-so-minorities-friendly ones are being disqualified because they don’t teach the “right stuff”…or maybe because they actually do.
redc1c4 commented:
can i sue and get the same deal on my loans?
Sy commented:
OK, some math:
4 years of Harvard to get a BA in Lithuanian Studies = $200,000
Assuming a 7% loan rate with a 20 year payback window produces an annual premium of $18,261 totaling $365,220 in payments.
Now, the Obama plan: Assume a starting salary of $40,000 increasing at 5% per year. For 20 years the total payments required are: $132,264 – where’s the other $232,956 coming from?
If you applied a 7% loan rate and subtracted the Obama Payments you have a balance at the end of 20 years of $530,660.
That $530,660 is the amount the taxpayers eat. Discountint at 5% back to Freshman Day 1 you get $164,541 that the taxpayers need to pony up.
What incentive is there to not borrow the max you can? Why not, it’s freaking free money.
Most state schools will be cheaper. But all grad school becomes taxpayer paid; including Harvard Law.
DC has a $2 Trillion deficit. You would think they could run out to WalMart and get a $1 calculator.
garrettc commented:
So how long could you stay in school? 20 years? 30?
kathie commented:
The government can now decide who gets financial help, what they must study to get the financial help and which colleges they favor to send students to. We will save $60 billion dollars over a decade or so, Obama says, in exchange for our freedom.
Elly commented:
Wow, he’s really pulling out all the stops, going for BROKE!
templar knight commented:
Really, all these promises being made by the idiot-savant sitting in the oval office are very nice, until you look at reality.
The United States is broke, and the rest of the world is not going to lend us the amounts of monies necessary to fund all of Uncle Sugar’s new programs. Medicare is broke, and can’t stand a $500,000,000.00 cut.
The market has already in effect lowered our debt rating, as you can see if you look at the rising interest rates necessary to attract buyers to treasuries. Yes, the powers that be in Washington will monetize as much debt as possible, but inflation will do the damage if they try that route.
So, really, all this talk amounts to squat. We’re broke, and the cuts to come will wipe out everything but Social Security, Medicare and the debt. Better get prepared, people.
Don Rodrigo commented:
Wow. Cool. Another financial bubble in the making. Just what we needed. And the crash on this one won’t occur until Michelle Obama’s second term.
labwriter commented:
Well, this is just wonderful. Uncle Obama gives the young ‘uns more free stuff. I’m not that far from retirement. I’ve paid into Social Security since I was 15 years old. Obama wants to wipe out my SS and Medicare, while he forgives education loans to 20-somethings who have yet to produce one damn thing. I would say this flips me into crazy, but I’m already there.
HeidiM. commented:
This is great. We’ve scrimped and saved a small fortune to pay for our child to go to a decent private college without taking any loans. Now we can transfer that money back to us and let the gov’t (oops, I mean YOU) take care of my child’s education. This is just more of Obama ensuring he’ll have a huge Democrat voting base from here to eternity. Debt is like an anvil around your neck and Obama wouldn’t have it any other way.
bigkahuna commented:
I would love to see the GOP take over the congress in 2010 and white house in 2012 and repeal everything this Putz has done and then actually improve on it by doing smart common sense things..
The first thing I would love to see is them repeal all congress members lifetime health insurance and put them on what Obama signed into law… Then revoke their pensions and stick them into Social Security just like the rest of us. If they bitch just say Hay you did it to the Shareholders of GM, Citibank, etc. You screwed the country and bankrupted the USA. suffer you pricks. You take over private industry.. I say we take over your publicly funded retirementr and make it PRIVATE business
Frank commented:
WTF
Tinian commented:
Note they use the term discretionary income. It’s not to be confused with disposable income.
Discretionary income is income after subtracting taxes and normal expenses (such as rent or mortgage, utilities, insurance, medical, transportation, property maintenance, child support, inflation, food and sundries, &c.) to maintain a certain standard of living. It is the amount of an individual’s income available for spending after the essentials (such as food, clothing, and shelter) have been taken care of:
Discretionary income = Gross income – taxes – necessities
http://en.wikipedia.org/wiki/Disposable_and_discretionary_income
Another ingredient in Obama’s recipe for economic ruin.
Melvin Winter commented:
Related parody: Analysts Predict Steep Rise in Zombie Menace Under Democratic Policies http://optoons.blogspot.com/2010/03/analysts-predict-steep-rise-in-zombie.html
jb commented:
I am going back to school.
Moright commented:
Don’t think for a minute that your own child might even qualify for this new giveaway, so keep that account. You are likely -take your pick – too wealthy, caucasion, capitalist, male to actually benefit. You’ll just keep paying.
alaskan commented:
With National Healthcare, Obama went after the Insurance Companies, Hospitals, and Doctors for being greedy and making money.
So now Obama goes after the Student Loan Banks??!!……hey, Obama….why not go after those Universities, Professors, and Endowments?
Of course the Universities and Professors are pushing Marxist ideology, so they are safe.
But it is hypocrytical to condemn the income of doctors and hospitals, while leaving Universities and Professors incomes alone….all the while the Universities are sitting on Endowments in the Billions of dollars.
Obama targets the ‘COST of Healthcare’ and now ‘covers the EXPENSE of Universities’.
Tip toe through the Marxist tulips.
bg commented:
++
Obama:
how else can i indoctrinate students to recognize that
my ideological way of thinking is the only way to go??
==
bg commented:
++
Obama:
albeit mandated, i need a back up mechanism aimed to herd
captured audiences to serve in my civilian security forces..
hmmm hmmm hmmm
==
bg commented:
++
chris @ 11:41 am #4
re: [I have yet to see that on my IRS forms]
“You ain’t seen nothin’ yet!” ~ Barack Hussein Obama
hah, and he told US that the Health Care bill was going to save
lives.. that & the selling of Brooklyn Bridge i presume.. /sarc/
==
kansas commented:
Pretty slick move really. He has too hurry in case his party loses the mid terms and puts a temporary hold on destroying the country.
kansas commented:
Lily
March 30th, 2010 | 11:37 am | #2
Well, good. I’ll keep the money I saved for my daughter’s education and spend it on myself. The suckers, I mean taxpayers, can foot my daughter’s tuition costs.
Well, Lily, if your daughter uses tanning booths, it will be my guess she won’t be eligible for tuition assistance.
aprilnovember811 commented:
I don’t know what to say anymore. Why are they letting an Indonesian citizen, do this? Is his color really worth the destruction of the entire country? I guess so.
kc_cowbell commented:
Since I’ve been paying on mine for the last 15 years, will Uncle Barack forgive the remainder of mine in 5?
olm commented:
Well, poop, I have to be a minority? I’ve done some ancestry, I have some native in me, will that qualify?
Isn’t this kind of sort of racism? I mean really, anyone but whitey?
gus commented:
Just a reminder this dimwitted Muslim is not a Socialist. Nor a bolshevik.
nelli commented:
If Obama is smart like they say he is, then he knows that he’s bankrupting the country. He’s not slowing down, he’s speeding up. So that must be the plan.
Is it a crime to deliberately bankrupt the country?
bill-tb commented:
Vote them out, it’s the only recourse.
averagemelon commented:
I have four kids, three of them in college. If you think I would ever recommend this foolishness to them, I would be deserving of the outcome. I recommend they quit college altogether before they take Obama money…there are ALWAYS strings attached in a dictatorship no matter what stage of development.
Randy commented:
Discretionary income
So, you pay your mortgage, your regular household bills, medical payments, car payments, groceries, etc. You make $3000 per month and have $1000 discretionary income left after your bills. So my kids will only have to pay $100 per month?
$100x12x20=$24,000 for a minimum of a four year college education.
As the father of four really soon to be college kids, I say SWEET. As an American cizizen who values the constitution and wants the governement out of my life, I say this guy is freakin’ nuts!
Of course, our taxes will soar and my kids will be beholden to the state, assigned a specific job, forbidden from attending church, can only have one child from a pre-arranged state union.
Need I go on.
wanumba commented:
Colleges are ALREADY over priced thanks to government meddling in the education market. Just like the mortgage debacle, when bus drivers had $800,000 homes, cheap loans enticed people into stretching too far for swanky schools they had to have for the NAME, but with piss-poor rates of return. And B.A and B.S. are so plentiful, one needs a Masters for many jobs now to qualify – MORE schooling, MORE costs, MORE loans.
Sounds so sweet, though, pay squat for EXPENSIVE Ivy Leagues that give you teaching assistants, rack up a HUGE debt, and dribble pay back – with the expectation that in 20 years all is forgiven.
But, these are SOCIALISTS. In TEN years, they haul all the student loan suckers in and say, “Well, the rules have to change, everyone has to sacrifice, so the government owns you, slave.” Okay, that’s too exaggerated, right? What was the name of the people who signed to years of binding servitude until they paid off their debts? AH yes, “indentured servant.”
Actually, this will kill higher education as we know it in the USA. This year, colleges are already seeing a shift as families hunker down – chosing cheaper schools, community colleges and trade schools instead. Harvard and its sister schools can fill with government-subsidized idiots who are happy to game the system. Within a short time, their degrees will be worthless and a laughing stock. These rotting Unis are already half way there.
Finncrisp commented:
So tuition will go up , up , and up because no one has to “pay” for it. Universities will be so flush with cash, you will think they were printing their own money. This has been exactly the problem with tuition rates. The more money there is, the more college costs, and the more empire building at each state university there is.
This is Crap!
LisaB commented:
I haven’t had time to read through the comments so I’m sorry if I repeat what someone else may have written.
I have two children currently attending college and if needed we will go the private loan route. I can’t help think that there will be strings attached to Obama’s “free” money. Remember folks he still wants his mandatory “volunteer” youth corp and what better way to achieve that when you have the young financially enslaved. Believe your lying eyes… we are seeing the rise of a tyrant.
bg commented:
++
wanumba @ 2:54 pm #43
re: [Just like the mortgage debacle]
and who was one of the lawyers responsible for
forcing banks to make those sub-prime loans??
OBAMA that’s who..
OBAMA SAID IN 2007 THAT GIVING SUB-PRIME LOANS TO
PEOPLE WHO COULDN’T AFFORD THEM WAS A GOOD IDEA!!!
one more reason he supposedly “surrendered” his lawyering license, yes, the President of the Harvard Law Review supposedly “surrendered” his license vs face charges of lying on his bar application, and who knows what else as they will not release any further information, and btw, Michelle”s was taken away from her in 1993 for reasons they refuse to state as well, gah!!
==
sybilll commented:
LisaB, unless you want to use your house as collateral on a private loan, and lie about the loan’s intended use, you can no longer get anything BUT government loans to fund higher education. If my understanding is incorrect, someone please feel free to correct me.
dries commented:
If you work for gov’t like teachers or police, you can retire after 20-25 years with lush pension & health benefits courtesy of taxpayers. Imagine coupling that with loan forgiveness after roughly same time. Win-win for government drones.
wanumba commented:
bg
March 30th, 2010 | 3:36 pm | #46
++
and who was one of the lawyers responsible for
forcing banks to make those sub-prime loans??
OBAMA that’s who..
………
Another excellent link, reminder and civic blog enhancement service by bg !
Obama the Onion, just so many,many, many layers we have to peel to find out who he really is and what he DOESN’T have his fingers in or had in.
Indy Voter commented:
Vote them out, this can be repealed….and see this from Big Government. http://biggovernment.com/wthuston/2010/03/30/obama-to-take-over-control-of-college-textbooks/
If you are interested in conservative candidates, here’s one in NC, Frank Roche, he is taking on a big liberal, David Price, who votes left of Maxine Waters http://www.nationaljournal.com/2009voteratings/
I will not give to the GOP, instead, I am searching for conservative candidates. Please consider a small donation for Frank if you like his message. Thank you for your consideration.
http://www.rocheforcongress.com/
wanumba commented:
sybilll
March 30th, 2010 | 3:55 pm | #47
LisaB, unless you want to use your house as collateral on a private loan, and lie about the loan’s intended use, you can no longer get anything BUT government loans to fund higher education. If my understanding is incorrect, someone please feel free to correct me
……….
Good point.
Is it immediate – like throwing the entire student financing into total disarray and chaos for September 2010?
Oh, that was one of those things Nancy “Cleopatra” Pelosi said we’d have to find out about AFTER they passed the bill.
Where’s it buried in the *ack* law?
wanumba commented:
“[A]ll new federal student loans will be direct loans, delivered and collected by private companies under performance-based contracts with the Department of Education.”
…….
Oh. Translation: “Connected political pay-back contracts.”
Be informative to see who owns the companies which will be awarded the billion dollar contracts.
DocScience commented:
A year or so ago, a caller to Rush Limbaugh stated that we should expect every act of an Obama administration to result in a massive transfer of wealth to the African American citizens of America, as unstated stealthy reparations.
At the time, I thought it extreme. But now seems it was right on the money.
James commented:
Its called buying votes with taxpayer dollars.
bg commented:
++
DocScience @ 5:00 pm #53
not all African Americans are happy with Obama’s agenda..
btw, this man admitted to being complicit in the
assassination of Malcolm X, and he’s at it again!!
==
bg commented:
++
re: bg #55
“For 12 long years I lived within the narrow-minded confines of the ‘straightjacket world’ created by my strong belief that Elijah Muhammad was a messenger direct from God Himself, and my faith in what I now see to be a pseudo-religious philosophy that he preaches…. I shall never rest until I have undone the harm I did to so many well-meaning, innocent Negroes who through my own evangelistic zeal now believe in him even more fanatically and more blindly than I did.”
Malcolm X
btw.. that was OBAMA’S SECURITY that he insists on employing
aside from secret service who “slipped up”.. aah, i smell a set up,
opportunist as it may be, better late than never heh Farrakhan..
==
bg commented:
++
wanumba @ 4:27 pm #52
and i would not be the least bit surprised
if they were Sharia compliant companies..
just a sample:
List of Shariah-compliant companies released
[The list was released at an “Investors’ Education Programme” organised by Idafa Investments Pvt. Ltd. at Islam Gymkhana in Mumbai on 21st of May 2005. In the programme Mr. Samir Mistry of the Tata Mutual Fund (TMF) spoke on “The Art of Picking Stocks” and Mr. Imtiyaz Merchant, a Market Analyst spoke on “The Science of Timing the Markets”. Both sessions were followed by a question and answer sessions.]
Shariah-compliant credit cards become more common
U.S. Interest in Shariah Finance Opens Dangerous Doors, Critics Say
i’ve been saying it since first i ever heard the name Obama & started researching.. no one can convince me that Obama is not laying the foundations for an eventual Islamic take-over, it may take 25, 50, or even 100 years for all i know, but that is Obama’s ultimate mission.. i’m also betting there are people who know this but are willing to take the gamble because they have the same goal of world domination, they may be partners now, they also may believe they can control the course Islam, but they are making a huge mistake, an huge, extremely sad mistake.. but who listens to the rantings of a crazy old lady.. ah, live & learn as they say..
oh look what i just ran across..
Islam, the UN, and the New World Order
An excellent speech from the 1990s by Sheikh Imran Hosein on the subject of Islam, the UN and the New World Order. (hard to listen
to, maybe because it’s so old.. English starts at the :38 mark)
for those interested, more here @ post #57 ..
==
Mediocre President commented:
I see the deviousness behind this plan.
Nobody would voluntarily want to be a doctor under Obamacare. But now that student “loans” are a joke, more people can afford to become doctors because what they’ll have to pay back for their loans is a joke. Not to mention that if the government is paying for your education, THEY will tell you what you can study and what field of medicine you will practice. Brilliantly devious.
Moright commented:
Sallie Mae announced that 2,000 employees will lose their jobs, beginning immediately.
Audacity commented:
Remember when Barack and Michelle were whining about paying off their Ivy League student loans…this smells of reparations.
JB in GA commented:
For what it’s worth: I worked as a college financial aid officer in the late 1970s, just as the student loan programs were expanding dramatically. Everything that I saw from analyses of financial aid professional groups indicated that grant programs were cheaper to run and easier to administer. Political factors, especially resentment of “free money”, drove the process. The result cost the government, schools, and students more in the long run. Even students who didn’t take loans were paying more because the overhead of their colleges had increased. Feel free to disregard my anecdotal account.
truth teller commented:
Obama: Hero of the Unproductive.
Unions – want a lot of $ for doing minimal work.
Welfare Recipients – want your $ for doing no work.
Black Nationalists – want $ from ‘whitey’
College Students – simply clueless about reality.
College Professors – just old college students.
Illegals – want your $ for doing a lot of work illegally.
If you own a business and need to lay off anyone due to higher healthcare costs, please lay off as many union employees as you can. Also, don’t use any shops or services that use union labor.
bg commented:
++
re: bg #57
re: [List of Shariah-compliant companies released]
lol & sorry, wrong link, duh!!
but here’s one that’ll set your brain aflame..
Problem: U.S. Treasury Endorsement of Shariah Compliant Finance
==
Suzy commented:
Oh, come on, folks. All this talk about discretionary/disposable income is silly. The current bunch in DC don’t know the difference.
Mark Barnes commented:
The other scary item is that you can also repay the loan by doing two years of community service. Radicals in training.
Corky Boyd commented:
The student loan takeover was put into the health bill to take advantage of the cost savings by not paying bank placement fees, and thus making the health bill more palatable. Then Obama turns around and makes it a money losing proposition by minimizing the payback with forgiveness in the end.
No CBO estimate here, just a wanton disregard for the public’s money.
LimoLibsStink commented:
0bama:
Let me be clear. I don’t care if I have to trash the dollar, no Student Loan should have to be repaid!
I am on a roll! In fact, all of those debts my Administration has racked up should never be repaid! I hereby nullify all debts of the US Treasury.
My Limousine is running and I have more economic damage to do. Let, Barney Frank, BF the Europeans and the Chinese – in fact screw the whole world! I can’t answer any more questions. Good day!
MJ commented:
can’t lick em, join em. Can I become a ward of the state at age 47?
bg commented:
++
MJ @ 7:03 am #68
hmmm, don’t rightly know.. Nanzi Pelosi said they’d have to pass the
bill to find out what’s in it.. so hang in there, ya never know!! /sarc/
==