Obama Calls Out ‘Millionaires’ to Pay for Student Loans

The Heritage Foundation The Daily Signal ^ | June 09, 2014 | Kelsey Harkness

[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.”

[LucianOfSamasota]

Obama’s decision to bypass Congress with an executive order snubs Senate Republicans, who are debating alternative approaches they believe would address the fundamental causes of rising tuition costs.

Exactly how does this work, again? Where the President has the option to create or change legislation with impunity but without Congress?

[Alex Murphy]

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.”

PFL

[scooby321]

Government workers only pay 10 Years?

The make more than the private sector.

[HereInTheHeartland]

OBSCENE!!
I am busting my butt to get my kids through school debt free; and a bunch of LOSERS will have debt forgiven that I will pay for. And my kids. Infuriating.
These kids should get off their a$$es and work for their education.

[Mercat]

Mr. Mercat and I are such suckers. First thing we did when we had a little money was pay off our son’s student loans. Actually he paid off most of them when his grandmother left him some money. We are almost debt free including several rental properties. That’s how we roll.

[wita]

How about we call out students who allow themselves to be sucked into outrageous debt for the almighty degree. Sort of reminds you of a Congress that is doing the same thing for the “good of the country”, or could it be votes to remain in the lucrative office.

[Sacajaweau]

My sons paid back their loans. They worked their butts off since getting out of college. They thought that was the American Way.

[LucianOfSamasota]

So the President can change the tax code?

Seems like Congress has some say on ‘tax loopholes’ regarding inheritance, capital gains, and income taxes?

[sickoflibs]

RE :”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.”

OK, so he limits what they must pay back for their loans, then calls for congress to raise taxes which they wont. Does this mean less $$$ to loan out in the future?

What does the law say? (not that it matters to Dems)

[grobdriver]

President Obama today signed an executive order to ease the burden of student debt at the expense of “millionaires.”

Oh, I give up.
I bite on articles coming out of a satire site, and I dismiss as satirical reports that turn out to be factual.

America is a laughingstock shadow of our former self.

[LucianOfSamasota]

If you are receiving something, you either earned it or you took it from someone who did.

[GailA]

0 is a multi millionaire how much is he and mooch putting in? The clintons?

[kdot]

Public sector is again, favored. And what of those “studies” degrees? And “...capped at 10% of discretionary income.” What’s the formula for that? More ways to game a system for money rather than reward achievement and excellence. THAT is what 0bama is all about.

[Kevin in California]

I assume he’s referring to Hairy Roid too?

[corlorde]

I’m still paying mine.

[GailA]

My eldest has a student loan hanging over his head from ITT, they have NO record he attended, no grades. He did attend 2 semesters, I have the single piece of paper with his grade points on it. YET they never heard of him.

[vicar7]

It does not go into effect for 6 months tis a good thing we have the GOP to fight against it and thwart it. LOL J/K

[silverleaf]

what a joke
this millionaire’s African relatives don’t even have indoor plumbing

preach it brother- into a mirror

[P-Marlowe]

It issues caps on monthly loan payments at 10 percent of the borrower’s discretionary income and forgives their remaining balance after 20 years.

Paying bills is not part of "discretionary income." What this does is to take the payment of a student loan out of the realm of an obligation and puts it in the same basic realm as money for cigarettes, booze and drugs.

If you got it, then you might want to pay it. If not, no big deal, in 20 years it will be paid in full even if you never pay a dime.

Unbelievable.

Someday the term "Bizzaro World" will be replaced in the Lexicon by "Obama World."

[Graewoulf]

Should the Federal Student Loan Program be closed to future debt in June, 2014, or in July, 2014?