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
The interest on those loans looked way too much like “free money”. Considering the Obama needs a huge influx of cash from nearly tapped-out taxpayers, that’s one of the few options left.
I suspect without the government guaranties it’d be that old case of only those who don’t need it getting a loan. (Just how good a bet were students before the Mac Daddy came in paying everyone’s loan?)
“I’m sorry but according to our records your parents have been voting Republican since the 1980s. We’re not able to accept your application for a student loan . . . unless . . . .”
BTW, is Obama good at zeroing in on non-urgent problems that’d be only made worse with greater government intervention or what?
PSST! I’ll let you in on a secret! I only drink two cups of Decaf Coffee a day. This is real! and people better wake-up or You are going to be drinking VODKA like the Russians to drown their pain!......:0( Psst! Go have 17 espressos in a row over 30 minutes, then you might be able to understand the urgency and importance!........./s/ :-)
That's probably the reason college bound Junior didn't get the big grant he was promised and the work-study job. The college told us they didn't receive all their money.
Wonder what the "other" might be.
Your story points up the importance of family members trying to educate their families to the impact of what is coming regarding taxes, interest rates, unemployment, etc. if this stuff is not repealled.
Tho difficult, I hope all liberty- minded will try to do a little education (as Rush would say, be the go-to person in the family) over Easter and Memorial Day holidays. I have friends (a few) who voted dem, and whenever I can, I try to gently make the point by asking the question that Reagan did, “Are they or their families going to be better off than they were 3 years ago?!” With unemployment at 11%, home values down 30+%, and 401Ks also down, few people feel things are or are going to improve. Seems you have your work cut out for you, good luck ;)
“I’m sorry but according to our records your parents have been voting Republican since the 1980s. We’re not able to accept your application for a student loan . . . unless . . . .”
BTW, is Obama good at zeroing in on non-urgent problems that’d be only made worse with greater government intervention or what?
“Wonder what the “other” might be.”
From what I have read (believe me, I have read everything I can find), the “other” educational funds include programs to “prep” students for college. We already have that. It’s called lower education.
I was in class today and my college classmates had no clue Obama had confiscated the college loan industry. They have no clue how screwed they are.
“Yes, I heard that too... my daughter is going to a private Catholic college so I am sure that will be off limits for Obama Money.”
You should probably know that he has also said that less money will be set aside for graduate funding. That is a great way to control not only who gets a higher education but what kind of education they get. For example, lower income individuals will likely get graduate funding for any academic purpose, but most of the graduate funding will be awarded to those who go into the medical field. Basically the government will “nudge” education choices via funding availability.
I was in class today and my college classmates had no clue Obama had confiscated the college loan industry. They have no clue how screwed they are.
I know, I know - I was just asking a question about the interest rate. I oppose eveything that zerO does - I am a NYer who gave $300 to a guy from Boston who’s a Red Sox Fan named Scott Brown.
The college forum I visit every so often has only one thread about this and the couple replies are like it’s nothing to concern themselves with. And those were parents’ responses.
“Underprivileged” mediocrities will receive the loans to the detriment of more meritorious people.
Sadly, I truly think that political correctness and diversity will creep into the student loan qualifications over time.
I would say even a primary vote for a hard lefty (not to mention a flake) like Brown cancels out any votes for Pubbies you might've cast over the years.
Phew, I feel so much better. So voting for Brown back in l980something and being a new convert to amish (so I am exempted from health care) pretty well covers me, eh?
As long as I keep a semblance of a sense of humor, hopefully I will survive.
I did the same thing for my son son for his college tution - 5% interest and tax deductible
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