Is Obama about to bail out students?

by -

With total student loan debt topping $1.2 trillion and not content with having nationalized the nation’s student loan industry, President Barack Obama wants to do more to bailout deadbeat borrowers that have taken out government-backed student loans.

President Obama calls it the “Student Aid Bill of Rights” – feel good plan to purportedly help students pay their student loan debts care of the U.S. taxpayer. Quoting the president:

“(My) Administration…will make college more affordable through increased Pell Grants and education tax credits, while improving transparency so that students and families have the information they need to select schools that provide the best value. Today, we are building on the Administration’s success helping students manage their debt and stay on track.”

The “Student Aid Bill of Rights…outlines a series of new actions that direct the Department of Education, Department of Treasury, Office of Management and Budget, Office of Science and Technology Policy and Domestic Policy Council, working with the Consumer Financial Protection Bureau and the Social Security Administration, to make paying for higher education an easier and fairer experience for millions of Americans.

Supporters say the “Bill of Rights” scheme will help students pay back their debt through lower payments and interest rate reductions.

Opponents fear it is the president’s way of teeing up “loan forgiveness” by Executive Order before he leaves office to relieve students (including those who did not graduate) of the need to pay back their government guaranteed debts.

Executive Orders notwithstanding, a section entitled “Forgiveness, Cancellation and Discharge” on the Department of Education website lists a range of options that students can use to stick taxpayers with the bill.

For example, loan forgiveness is available for those who go into teaching. Another forgives the debt for those who are partially disabled (undefined). Student loans may also be discharged in the event of bankruptcy – something that does not apply to federal income taxes.

President Obama ends his student loan missive with this advice.

“The Student Aid Bill of Rights builds on the efforts our Administration has been taking over the last several years to make college more affordable and continues to chip away at the burden of student debt – so no one should feel overwhelmed by their student loans.”

Forgiving, canceling or discharging student loan debt is a sure fire way to solve the student debt problem.

  • R J Schundler

    More Federal money will just let the schools charge more. What we need to do, it ban all Federal funds from going to schools with tution in the top 10 percent rate. And perhaps a limit on the funds that a school can receive if their tution is in the 20 to 10 percent. This would promote the better use of funds by schools, and the schools will work to avoid tution increases that might place them in the top 20 percent ot tution.

  • Mcj

    conveniently just in time for HIS kids to benefit….and know this…they WILL benefit.

  • Angry

    This is major BS. Already know of someone that has taken advantage of the Student Loan Forgiveness. A lady in her mid 40s that has 2 kids (no daddy in the picture). She borrowed $45k and took 1 year courses at different “colleges”…not a real college like a State Collge or University. She’s been taking 1 class per semester for the past 6 years. She works part time at an under the table job. She receives Mediaid, food stamps, etc. She has already “graduated” with 2 different certificates but refuses to get a real job using the education she received ( because she “doesn’t want to work full time”..her words). She received communication that her loans are forgiven and she will pay nothing. She has already signed up for another college to take more classes. She plans to just keep taking classes and borrowing $ with no intention of paying it back or actually getting a job. It has become a hobby for her.

  • Pissed off

    If you can’t afford it, don’t go to college. Who decided it was a right for every kid on the planet to go to college? If you can’t afford, don’t buy it! It’s a simple principal to live by. This is no different than the govt scheme that every person deserves to own a home and forced the banks to make bad loans to people that couldn’t afford them. Now we have HARP at the cost to tax payers to bail out all the people getting foreclosed on. What’s next, cars, life insurance, food, your guess is as good as mine. Be afraid, very afraid.