Posted on 03/30/2010 4:28:30 PM PDT by Freedom56v2
Alexander: Obama's 'Soviet-Style' Takeover of Student Loans [Robert Costa]
Sen. Lamar Alexander (R., Tenn.), the U.S. secretary of education from 1991 to 1993, tells National Review Online that President Obama’s revamping of the federal student-loan program is “truly brazen” and the “most underreported big-Washington takeover in history.”
“As Americans find out what it really does, they’ll be really unhappy,” Alexander predicts. “The first really unhappy people will be the 19 million students who, after July 1, will have no choice but to go to federal call centers to get their student loans. They’ll become even unhappier when they find out that the government is charging 2.8 percent to borrow the money and 6.8 percent to lend it to the students, and spending the difference on the new health-care bill and other programs. In other words, the government will be overcharging 19 million students.” The overcharge is “significant,” Alexander adds, because “on a $25,000 student loan, which is an average loan, the amount the government will overcharge will average between $1,700 and $1,800.”
“Up to now, 15 out of 19 million student loans were private loans, backed by the government,” Alexander says. “Now we’re going to borrow half-a-trillion from China to pay for billions in new loans. Not only will this add to the debt, but in the middle of
Middle tax families will bear the brunt of this tax increase.
Middle class families will bear the brunt of this tax increase—sorry so frustrated can’t type....
What happens to existing student loans BTW?
bump
Its what most of us are thinking already, so re-inforcing the obvious truth is risk free and will pay off in Nov.
Everything FUBO does is “Soviet style” I’m just waiting for the purges to start.
Everything the Obama administration does is brazen. We’re in whole new territory here in terms of a US presidency, one that is going so far to the left that it doesn’t really have a precedent with the sole exception being perhaps FDR. The presidency we have today reminds me more of the far left regimes hostile to US interests we watched crop up in the world in the 70s and 80s, such as Nicaragua and Greece, than an American presidency. I remembered looking at these kinds of arrogant, power mad, America hating, freedom trampling regimes with angst from afar. Now the beast is here among and over us.
Want a loan? You have to agree to serve in the Obammunist Youth Brigade for two years after graduation. Or, want a loan? Be ready to spend a couple of years after graduation cleaning up the slums of Detroit or Atlanta.
It'll be something like that.
Scouts Out! Cavalry Ho!
I am 61. Time to go back to school and get free money!!!
Not sure, my daughter is starting college in the fall 2010, I just filled out my Parent Plus Loan App (she is only 17 so I cannot co-sign for her until she is 18 in December), anyway this whole thing bothers me, she white, smart, middle class... I am worried about next year and the OBAMA $$$. She did receive 2/3 tuition in scholarships/grants but the remaining 1/3 will be a student loan.
NO HE WILL ONLY GIVE IT TO FOLKS WHO WILL NEVER PAY IT BACK. OBUMMER IS ONLY FOR REDISTRIBUTION OF WEALTH. WHEN WILL IT END.
Hey kids.....you won’t get any money for college UNLESS YOU ARE A DEMOCRAT!! Coming soon....No one will get anything unless they are a DEMOCRAT!
Opps, forgot one thing:
FUBO!!!
Good questions. From what I heard, those loans obtained prior to July 1 will continue (tho most students only get loans one year at a time).
Given the economic climate, I am not sure that banks would want to take on a non-capitalized loan—in past they did not need collateral because the government guaranteed the loan. That said, probably would not rule out a parents home equity loan or credit line on a stock portfolio....
Just another example of further government intervention.
6.8 % interest rate ? I thought student loans were currently at about 3 or 4%
“Now we’re going to borrow half-a-trillion from China to pay for billions in new loans. Not only will this add to the debt, but in the middle of”
The massive borrowings (about 60-70 billion in 2007/8) grew to $250 billion a month by the end of the Bush term, and now are near half a trillion a month...by the end of this year $2 trillion will have been borrowed. Each borrowed dollar now produces a NEGATIVE $.45 in GDP. Half a trillion borrowed for education loans from “China” or others,results, therefore in a GDP reduction of $225 billion...not so hot a result....in 4 years, with no expansion, that is a trillion in GDP reduction. Add that to Medicare and ss borrowings, and the nation has no possibility of “recovery”. Politically correct educations cannot ever produce wealth...especially socialist economic educations. The middle class has been cleaned out already of 40% of its wealth...with more to go. Socialism, “big” govt. will regenerate none of it.
“she white, smart, middle class...”
Let’s not forget Obama’s announcement that he is diverting a large portion (I’ve read up to 4 billion) of student loan monies to “historically black colleges” and “other” educational purposes. He said it again during last weeks radio address to the nation.
Hey kids.....you won’t get any money for college UNLESS YOU ARE A DEMOCRAT!! Coming soon....No one will get anything unless they are a DEMOCRAT!
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