Posted on 06/10/2014 6:08:08 AM PDT by LucianOfSamasota
Using his pen again in “this year of action,” President Obama today signed an executive order to ease the burden of student debt at the expense of “millionaires.”
The program, “Pay as You Earn,” expands an existing federal loan option available to undergrad and graduate students. It issues caps on monthly loan payments at 10 percent of the borrower’s discretionary income and forgives their remaining balance after 20 years.
For those working in public service or the government, any remaining debt is forgiven after 10 years. An estimated 5 million more borrowers will become eligible under the new plan. Before today, only those who took out loans after 2007 were entitled to “Pay as You Earn” benefits.
To finance the program, Obama proposed closing “tax loopholes” for the wealthy, or what he called “millionaires.”
“This should be a no-brainer,” he said today at the White House. “It would be scandalous if we allowed those kinds of tax loopholes for the very, very fortunate to survive while students are having trouble just getting started in their lives.”
(Excerpt) Read more at dailysignal.com ...
I think he might be on to something.
A millionaire buys the loan from a bank after the student signs indenture papers. The student then becomes the millionaire’s indentured employee until the loan is paid according to the terms of the promissory note.
It would seem to be a good solution for both parties.
So it starts, they punishment of savers.
Why do they hate?
Your bride told me you should go for it!
Remember - the student loan system has essentially been nationalized. So, any rational market response to loans not being paid back that you are envisioning....will not happen.
They will accelerate...’for the children’.
I can already see the scam now. Little Johnny gets a gazillion dollars in loans (much of which goes to the pony tailed professor), and he gets his gubmint job, to limit himself to 10 years payback. The terms of his salary, benefits, colas, allowances, etc. will be specifically tailored towards not being considered ‘income’ for the purposed of the 10% calculation. And there may even be a balloon bonus for 10 years of loyal service (deferred compensation).
I can even see ‘government service’ being morphed into ACORN like jobs, since they are ‘getting out the vote’.
Its a new opportunity for political money laundering.
And we will pay for it...Obama has already telegraphed his intent - the evil millionaires will pay for it.
You first, O-buttwipe.
Notice how all these solutions do everything they can to ensure the money keeps flowing without cessation to the schools and without any accountability or responsibility on the schools’ part. God forbid they might have to fire an Associate Dean for Diversity.
You first, 0bama0, since you’re a millionaire.
And LEADERS GO FIRST!
That’s why they call them LEADERS!
Use the common sense approach: Like Social Security, Medicare, Medicaid, Welfare, Food Stamps, and other federal largess, make them all block grants to the individual states. Fixed amounts that they can spend as they choose.
If we really want to be mischievous, bundle them together into a single block amount, and leave it up to the states to determine who gets what.
I’m in the same boat and feel the same way.
In addition many of my kids friends are pretty much getting a free ride anyway.
The MC/UC gets to pay full ride.
AKA The Nomenklatura.
This serves three purposes - it buys votes, keeps big money flowing to the education industry, and allows kids to major in totally valueless subjects like gender studies. And yeah sick - it will limit loans...
Or they can get an entry level government job, work for 10 years and then move to the private sector once their loan is forgiven.
Outstanding! Thanks for checking. Stand by for a personal review on my new toy.
this policy is litterally encouraging people not to work.
As soon as they get a job not only will they lose all their unemployment benefits and welfare, but they will also be forced to pay 10% of their new jobs income towards student loan repayment.
Almost no one will be able to break free from the welfare trap after this.
snip
"Congress passed a pilot version of the Direct Loan program as part of the Reauthorization of the Higher Education Act under President George H. W. Bush, Bush Signed it into law on July 23, 1992"
Found where he stole the idea from:
Elizabeth Warren introduced her first bill, the Bank on Student Loans Fairness Act, which would allow students to take out government education loans at the same rate that banks such as Goldman Sachs and J.P. Morgan Chase pay to borrow from the federal government. Suggesting that students should get “the same great deal that banks get”, Warren proposed that new student borrowers be able to take out a federally subsidized loan at 0.75%, the rate paid by banks, compared with the current 3.4% student loan rate.[84] Endorsing her bill days after its introduction, Independent Senator from Vermont Bernie Sanders stated: “the only thing wrong with this bill is that [she] thought of it and I didn’t” on The Thom Hartmann Program.
Webley, K. (10 May 2013). “Elizabeth Warren: Students Should Get the Same Rate as the Bankers”. TIME Magazine.
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