Obama’s plan to bailout student loan recipients is his latest attempt to buy votes at the expense of the American taxpayer. It also happens to be the latest move in his Cloward Piven strategy to destroy the US economy.

Free Obama Money for everyone… special interest groups.

(Right Pundits)

Obama announced a new plan today that will add billions to his record debt and erode the US economy by giving free money to students who borrowed their way through college.
FOX News reported:

In keeping with his new campaign theme of “we can’t wait,” President Obama today will roll out a plan to put more money in the pockets of some of the nation’s 36 million student loan recipients.

Obama has broad latitude in this area – certainly broader than the first two parts of his western campaign trip, underwater mortgages and subsidies for hiring veterans – because one of his early legislative initiatives was to have the federal government take over the student lending business in America.

Obama argued for the measure in 2009 as a cost-savings initiative, saying that the old system of privately issued, government secured loans reduced the amount of available money for needy students and also prevented the feds from making the system more efficient.

But Obama is now seeking to use that new power to obtain a taxpayer-financed stimulus that Congress won’t approve. The idea is to cap student loan repayment rates at 10 percent of a debtor’s income that goes above the poverty line, and then limiting the life of a loan to 20 years.

Take this example: If Suzy Creamcheese gets into George Washington University and borrows from the government the requisite $212,000 to obtain an undergraduate degree, her repayment schedule will be based on what she earns. If Suzy opts to heed the president’s call for public service, and takes a job as a city social worker earning $25,000, her payments would be limited to $1,411 a year after the $10,890 of poverty-level income is subtracted from her total exposure.

Twenty years at that rate would have taxpayers recoup only $28,220 of their $212,000 loan to Suzy.

The president will also allow student debtors to refinance and consolidate loans on more favorable terms, further decreasing the payoff for taxpayers.

Obama’s move comes at a moment when many economists are warning of a college debt bubble that is distorting college tuition rates and threatening to further damage credit markets. The president’s move is intended to make college more affordable for more people, which will, in turn allow universities to jack up their rates.

Remember: This is the same guy who likes to lecture about about “living within our means.”

 

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  1. By nationalizing the student loans, Obama has in effect, laid the ground work for another financial disaster. If a few banks here & there failed because of delinquent student loans? Well, that happens. BUT, if you bundle all those student loans onto the backs of the taxpayer? Well, you’ve just created a potential for a huge: eventual financial bust.

  2. Correct me if I’m wrong. If colleges see that Suzy Creamcheese only has to pay a fraction of the debt they hand her but the government will pick up the rest of the tab, there is nothing to keep them from jacking tuition to astronomical levels – which the taxpayer will ultimately be on the hook for.

  3. I made it out of undergrad debt-free. If it ends up that you suckers end up paying for those three years of law school: LOLOLOLOL

  4. If you take out a loan to pay for a university education, then you should pay it back in full. It is the responsible thing to do, unless you are a commie and believe the government should finance your education until they believe you shouldn’t have one. Commies killed all the educated people in the Ukraine and Poland, because they wanted to dumb down the populace in order to control them……mind you, starving and shooting them worked too.

  5. America is swimming in debt, but Obama keeps thinking of ways to spend her into oblivion. Now anybody think Obama isn’t trying to economically destoy the U.S.? When good men do nothing, nothing gets done.

  6. I see Obama causing what main stream America has been hungry for.

    The shrinking of the Federal Government in rapid order. He’s already created

    the Tea Party movement and now conservative asendencey and the demise of the

    Socialist/Progressive/Democrat party. This boy is going to be amazed at the

    unintended consequences that will hit the Democrats square in the a$$.

    powder is dry

  7. Getting a degree in Transgendered Eskimo Women’s Studies should not be financed by the taxpayers. We have a mountain of worthless degrees from liberal universities being obtained by a bunch of lazy and clueless brats. Pay for your own worthless degree. I also don’t want to pay for your fat government job and pension in which you think your Transgendered Eskimo Women’s Studies diploma could be useful.

  8. someone needs to lock this commie A$$hole up for life

  9. Yeah #3 “Son of Walden”, you can be a smart ass about it now but at some point we will pay back parasitic SOB’s like you with lead.

  10. Son of Walden #3
    Are you sure you want to brag about what amounts to unethical behavior? And you intend to do what with your law degree? Were I the head of a law firm I would certainly not hire you as an intern. Or do you intend to ride your law degree into public office? No doubt you would be a perfect fit for the job.
    P.S. Please learn to write clearly, I still am not certain you mean to publicly brag about cheating tax payers. Frankly that’s just stupid.

  11. It is inherently one of the World’s Greatest WRONGS that this guy who now calls himself “Obama” is not on trial in a huge Capital Felony case, for being an imposter, a fraudulent usurper, a foreign agent on assignment as an insurgent and subversive enemy agent.

    Along with all the politicians who aided and abetted his fraudulent impersonation and false accreditations.

  12. #3 is a son of sumthing…………..beeyotch.

  13. Obama’s plan to bailout student loan recipients is his latest attempt to buy votes at the expense of the American taxpayer.

    He bamboozled the young’uns before, so why not try again?

  14. #2 October 26, 2011 at 1:43 pm
    Black Sabbath commented:
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~

    Then you won’t be surprised that with unemployment soaring and the economy crashing, university tuitions are up an average of $8,000 JUST THIS YEAR.

  15. Just a couple of reminders:

    1. The interest rates on student loans provided by the generous American people have always been very, very low.

    2. The way to minimize your debt is to pay your living expenses as you go.

    Some of us view the education debt as a debt of honor, and the way to show your gratitude is to pay it off, in the form of the actual loan payments, and the increased taxes that naturally go with the better income.

  16. The very first thing that happened to me upon graduation from college was Ronald Reagan ending the deductibility of student loan interest. It cost me many thousands of dollars in my day. I still paid them back on time and barely complained. If Obama cuts any of these current slackers a break, he will be doing a great disservice to everyone. Pay your debts, work hard and shut yer trap!

  17. Build up 100k or more for college debt in some useless degree mill and then only have to pay 10% of what you earn for flipping burgers and then cap it at 20 years maximum payback will mean the taxpayers will eat about 80% or more of the loan.

  18. It appears Obama is buying the younger generation’s vote on election day 2012 at the expense of the American taxpayers.

  19. Where the hell is Congress?



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