President Cloward-Piven’s Latest Move Will Stiff Taxpayers and Add Billions to US Debt

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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  • P. Aaron

    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.

  • Black Sabbath

    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.

  • Son of Walden

    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

  • Joanne

    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.

  • Joanne

    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.

  • Millitant Conservative

    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

  • Ella

    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.

  • #1AMERICAN

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

  • usamopatriot

    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.

  • Stuart

    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.

  • Rose

    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.

  • Millitant Conservative

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

  • Blacque Jacques Shellacque

    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?

  • Rose

    #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.

  • Ginger
  • Valerie

    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.

  • http://psutafalumnigolf.blogspot.com dfbaskwill

    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!

  • nano

    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.

  • Jonah Vark

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

  • DomesticGoddess

    Where the hell is Congress?

  • Wm T Sherman

    The recent government takeover of student loans contains a provision that prevents loan holders from getting out of debt by declaring personal bankruptcy. Perhaps that was to ensure that the taxpayers would be on the hook for the maximum amount should a bailout be put through, or to create maximum desperation for the debtors to motivate them to complain.

    I don’t think a bailout is ever going to happen in this political environement – it’s just red meat for the base. In fact the proposal seems highly coordinated with the Occupy movement, doesn’t it? A lot of those pasty white kids were whining about the student loans that funded their Gender Studies degrees. A coordinated approach.

  • President Emily Litella

    Eat your peas never mind

  • Ella

    #20 Domestic Goddess – this was done via Executive Order, so that approval of Congress was not needed. Just like that underwater mortgage fiasco of a couple of days ago.

  • Blackbird

    We ask that the government undertake the obligation above all of providing citizens with adequate opportunities for employment and earning a living.

    The activities of the individual must not be allowed to clash with the interests of the community, but must take place within its confines and for the good of all. Therefore, we demand:…an end to the power of the financial interests.

    We demand profit sharing in big business.

    We demand a broad extension of care for the aged.

    We demand…the greatest possible consideration of small business in the purchases of the national, state and municipal governments.

    In order to make possible to every capable and industrious [citizen] the attainment of higher education and thus the achievement of a post of leadership, the government must provide an all-around enlargement of our entire system of public education…We demand the education at government expense of gifted children of poor parents…

    The government must undertake the improvement of public health — by the greatest possible support for all clubs concerned with the physical education of youth.

    [We] combat the…materialistic spirit within and without us, and are convinced that a permanent recovery of our people can only proceed from within on the foundation of The Common Good Before the Individual Good .

    (Nazi party platform adopted at Munich, February 24, 1920;Der Nationalsozialismus Dokumente 1933-1945, edited by Walther Hofer, Frankfurt am Main: Fischer Bucherei, 1957, pp. 29-31)

    http://www.lawrence.edu/sorg/objectivism/socfasc.html

    Those who refuse to learn from history are doomed to repeat it. These are the promises made by would be tyrants over and over and over again, and fools keep falling for the scam. Because at the end of the day the most successful scams prey upon those who believe they actually can get something of value for nothing.

  • ohiochili

    Walden…oh so you are really in LAW school? Is THAT what you tell your friends at the comic shop? I’d say more like the 10th grade, fool. You are just like the little morons who used to come on line when my son used to play Call of Duty…they liked to antagonize the players and thought they were sooooo cooooooool messing with the big guys…you know..using big cuss words and calling other players names.

    You really need to get out of the basement and into the fresh air and blow some of the stink off yourself. I would also worry about what they write about you when your high school yearbook comes out..you don’t want to be ‘Most likely to be an object of ridicule’

  • http://webcache.googleusercontent.com/search?q=cache:stQwDfyliEIJ:www.eqil.org/civil.html+%22Illinois+Religious+Freedom+Protection+and+Civil+Union+Act%22&cd=4&hl=en&ct=clnk&gl=us&s Rob Crawford

    Boot him out of office, rescind everything that’s been done during his term, and make the whiners pay back what they’ve stolen.

  • http://biggovernment gosh!

    #19 bing………………it sure looks that way………..but this plan has more to do with control……………..what better way to control someone if you hold their debt………………obama working on his civil army………………

  • http://none tommy mc donnell

    the american worker is broke and now obama want the workers to pay someone else’s loans so he can get their vote. why didn’t he say anything about there high cost of a college education, oh i forget the college administrations and faculties are his constituency. not worry about colleges making windfall profits?

  • http://webcache.googleusercontent.com/search?q=cache:stQwDfyliEIJ:www.eqil.org/civil.html+%22Illinois+Religious+Freedom+Protection+and+Civil+Union+Act%22&cd=4&hl=en&ct=clnk&gl=us&s Rob Crawford

    Where the hell is Congress?

    Apparently we no longer have the government the Constitution describes, but rather a one-man dictatorship.

  • Valerie

    Spew Warning:

    I am linking this article from the Washington Post simply to let everyone here know what we are up against. There are people who will believe the drivel in this article.

    http://www.washingtonpost.com/opinions/the-republicans-war-on-science-and-reason/2011/10/24/gIQALl3BEM_story.html

    Katrina vanden Heuvel, (I’m really not sure how that name translates) is yet another leftist that is not about to be confused by the facts.

    http://www.washingtonpost.com/katrina-vanden-heuvel/2011/02/24/ABMj4XN_page.html

    Indeed, she has made a career out of lying about Republicans.

    http://www.discoverthenetworks.org/individualProfile.asp?indid=1649

    Dictionary of Republicanisms: The Indispensable Guide to What They Really Mean When They Say What They Think You Want to Hear (2005); Taking Back America: And Taking Down the Radical Right (co-authored in 2004 with Nation Contributing Editor Robert L. Borosage and published by Nation Books);

  • http://none tommy mc donnell

    i wonder if these college students that are going to have these student loans forgiven realize they are going to be on the hook for them as taxpayers. bernie madoff maybe.

  • Grabbit Frabbit

    My name is Suzy Creamcheese…

    Now that I’ve done it all over, no one else will except me.

    I’ve come home to my Mothers.

    ((oh, and send money and clean underwear)

    (sorry, Frank!))

  • Patty

    Judge N. on Fox said Obama can do this. College’s received Government Loans. Therefore, Obama can do whatever.

  • Patty

    Here’s is one thing the Occupiers are asking for, funny, Obama will grant their wish.

  • Patty

    #29

    Ron Crawford
    Obama is bypassing Congress just said it again today.

  • Patty

    Obama says Congress is holding up the Job Bill so now, he will go it alone.

  • Patty

    tommy mc donnell
    #28

    Politics, Obama is slick and he is hoping the new youth voters and the older ones will vote for him. This is Chicago Thuggery in Politics. Obama is a mad man. And rest assured we will pay for all of his proposals.

  • iconoclast

    Yet again this SCOAMF has used me for a chump. I paid off my house years ago, so I get to pay for other people’s houses. I paid cash for my kid’s college education, so I get to be a chump for parents whose kids studied useless degrees.

    Why do I insist on being such a chump when everyone else is grabbing whatever they can with both hands?

  • bg

    ++

    OT..

    B Hussein O’s friends (more here) complain
    Catholic Schools too Catholic (more here)..

    you heard right folks, and guess what else..

    you ain’t heard nothin’ yet, and you ain’t gonna do nothin’ about it
    neither, cause guess what, there are no such things as politicians,
    nope, no more, only RICH porky pigs congresscritter millionaire’s..

    but hey, they make for great actors..

    ==

  • jimg

    At some point, the people who didn’t grab too much house, paid off their debts and basically played by the rules are going to blow a gasket.

    For one, I’ve had just about enough of MY money being used to pay off people who fvcked up.

  • Darwin Akbar

    Did Congress actually grant the executive branch the power to rewrite, by executive order, the terms of contracts entered into between private entities at arm’s lenght? If so, EVERYONE who voted for such legislation should be impeached.

    This is an absolute disgrace…Democrats hit bottom, keep digging.

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  • RS

    Actually I believe it is worse than this.

    My future son in law has over several hundred thousand in undergrad and grad loans.
    He opted to join the federal government after grad school, primarily because of the loans.

    After 10 years of indentured servitude with the government, the feds (using our money) will ZERO the loan balance, which, since he isn’t even covering the interest on the loan with his low Obama payments, will be like getting a $400,000 bonus. Who needs Wall Street for the big bonus green!

    What a deal for the taxpayers and all those stupid “responsible” folks like me who saved their money, didn’t buy a boat or a marble lined McMansion and paid cash for my childrens’ college.

  • bg

    ++

    Foxy

    Mama

    ==

  • quietwolf

    If there was ANY doubt that this guy is trying to destroy the American economy this should remove it.

  • bg

    ++

    Obama talking about he & the wifey..

    “by the time we finished going to law school..”

    ==

  • Marisa

    I thought the original terms of the program were more than the student loan deadbeats deserved—15% of income and the debt forgiven after 25 years.

    At least people in default are not eligible for this new program, since it can’t be given to people in default. Let’s wait to hear screams and whining from the OWS crowd.

  • map

    Run the numbers and weep. It takes a payment of >$1,500 a month to pay off a $212,000 loan in 20 years (at 6%). According to Bambi’s schedule, that would take an income north of $180,000 per year. This plan is nothing more that a gift of our money to “his” voters.

  • bg

    ++

    retroactive?? /s/

    my 2 MIT grads with no jobs could use the break..

    ==

  • Molon Labe

    Commies R Us? He siad he’d change the US. Every nation gets the government it deserves. How many of those here will bother to vote in 2012?

  • Oh Noes!

    Where is Congress in this? They need to hold the purse strings and not give a damn dime of our hard earned cash to this Commie Bastid’s plan. They need to start the damn impeachment process just to keep this Jackel from spending another damn dime and come November every red blooded American better get out and vote this piece of crap out and then arrest his azz for treason and throw him in Gitmo.

  • GOP KICKS ASS

    This is simply more redistribution of wealth to colleges, just like he has done with the unions.
    Have you seen the endowments at these universities. I guess this is why he had the gov take over the student loan program. How neatly this works. Have you seen the donations these universities made to Obamas campaign?

  • saveus

    Where in the Constitution does he have this power?
    He’s not the king.
    Impeach and remove NOW!

  • mg4us

    If President Zero really cared about these students, he would cap these liberal University tuitions per year to be no more than 2-3x what it costs to educate a HS senior.

    Imagine these schools having to LOWER their charges from $35-50K per year to $10K!

    How would they be able to afford the salaries and perks of these leftist leaning professors?

    Even under Obama’s new plan, if the Student does not repay the full loan, then the school who educated him or her needs to pay off the balance for failing to provide an education worth anything!

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  • http://www.marlene.org Susan Marlene

    When are people going to wake up and realize that destroying the American economy…and America, period, is Obamanation Obama’s whole purpose for what he is doing. He is trying to set America up for a takeover by the Muslims, which he IS… He was NOT born in America. What other job in America can you get without a COMPLETE FEDERAL BACKGROUND CHECK. If one had been done on him…he would NOT be in the White House. And, it is much worse than “we, the people” know about…we don’t know what he is doing behind the scenes…he and his Czars and co-horts. Lets GET THEM AND HIM OUT!!! If we don’t, there won’t be an AMERICA for long! I would say, “Vote him out next election.” But, what I would rather happen is for him to be impeached NOW…and put his behind in PRISON for fraud and other crimes!