Posted on 06/11/2014 3:10:24 PM PDT by SeekAndFind
An unsurprising yet groan-inducing addendum to the empty gestureexecutive order President Obama so magnanimously introduced this week to allow millions of student-loan borrowers to cap their monthly payments at 10 percent of their current income and then be fully forgiven after 20 years — a “favor” to borrowers to lessen their burdens that will, in the long run, only serve to inflate future tuition prices and borrowing costs ever further. I missed this on Monday, but the WFB didn’t:
SECRETARY OF EDUCATION ARNE DUNCAN: We actually don’t know the cost yet. Obviously we have to go through this regulatory process, so we’ll figure that out the back end. But we think this is something that will be fantastic for the economy. … We’ll work through the details as we go through the regulatory process.
Translation: Don’t know, don’t really care.
Anyhow, speaking of government-issued ostensible favors to student borrowers that actually end up worsening their problems, Sen. Elizabeth Warren’s even larger and similarly perverse-incentivizing student-loan proposal was shot down in the Senate this morning, at least for now:
The Senate on Wednesday voted not to move forward on a bill from Sen. Elizabeth Warren that would have allowed an estimated 25 million people with older student loans to refinance that debt at current, lower interest rates.
Democrats are vowing to keep the issue alive and bring it back for another airing this year. …
“We’re not giving up,” Warren said at a press conference shortly after the vote, slamming Republicans for blocking the bill. …
Warren’s bill would pay for refinancing students’ loans by raising taxes on the wealthy, a guaranteed non-starter for Republicans in the Senate and the House. Sen. Chuck Schumer (D-N.Y.) — who Tuesday said Democrats will bring it back to the floor in the future if it fails to pass Congress — has in the past said that paying for a student loan bill using the so-called “Buffet rule” is a surefire way to politicize it.
It’s FREE the Tax Payers are paying
So a loan holder must make the payments for 20 years.... If they don’t make their payments, then the debt is not forgiven, is then what we are to assume?
Socialism Is Legal Plunder - Bastiat
(what difference at this point does it make?)
DEPOPULATE SOCIALISTS from the body politic.
live - free - republic
No one in the federal agencies knows what anything cost. More importantly, they don’t care what things cost. EVEN MORE importantly, they all believe they don’t cost enough and always want more.
No matter, the Marxists will send yet another open-ended bill to the American people.
Hey, folks, you just THINK the money belongs to those who earn it; it really belongs - ALL of it - to your government Masters.
Think in the terms of what GM paid back to the American taxpayers after Obama pulled off a totally illegal “Bankruptcy”.
—>> “Education Secretary Arne Duncan: No, we don’t actually know the cost of our student loan program” <<—
It doesn’t cost anything except for the little amount spent on green ink and paper.
Money is free with Obama in charge.
This should effectively cap total debt and limit tuition to what can be serviced by 10% of the average salary. That is going to hurt the ability to raise tuition because the max debt that can be serviced will be well under $100k. Counting on the Govt to make up the difference will be a big risk over time.
This will have amusing unintended consequences
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