Obama Prepares to Create More Professional Debtors Through the Federal Student Loan Program: Pass Debt Off to Taxpayers

The federal student loan program promises a better life through more education. In truth, it delivers more enslavement by producing federal debtors that owe tens of thousands of dollars and more upon graduation. In other words you are drowning before you ever get started, and considering the state of American education, more and more college graduates realize how meaningless their piece of paper is as the student loan bills come in.

Obama will announce his Student Stimulus plan in order to expand this federal entrapment. Of course, all of this is cleverly timed to begin working on the young base that embraced Obama four years ago and propelled him to an office he was hardly qualified for.

The stimulus doesn't just encourage more students to go into debt. It promise them they will only pay a fraction of that debt, and the American taxpayer will have to pick up the rest of the tab, which is scary considering Americans are over $1 trillion in student loan debt.

In keeping with his new campaign theme of “we can’t wait,” President Obama today will roll out a plan to put more money in the pockets of some of the nation’s 36 million student loan recipients.

Obama has broad latitude in this area – certainly broader than the first two parts of his western campaign trip, underwater mortgages and subsidies for hiring veterans – because one of his early legislative initiatives was to have the federal government take over the student lending business in America.

Obama argued for the measure in 2009 as a cost-savings initiative, saying that the old system of privately issued, government secured loans reduced the amount of available money for needy students and also prevented the feds from making the system more efficient.

But Obama is now seeking to use that new power to obtain a taxpayer-financed stimulus that Congress won’t approve. The idea is to cap student loan repayment rates at 10 percent of a debtor’s income that goes above the poverty line, and then limiting the life of a loan to 20 years.

Take this example: If Suzy Creamcheese gets into George Washington University and borrows from the government the requisite $212,000 to obtain an undergraduate degree, her repayment schedule will be based on what she earns. If Suzy opts to heed the president’s call for public service, and takes a job as a city social worker earning $25,000, her payments would be limited to $1,411 a year after the $10,890 of poverty-level income is subtracted from her total exposure.

Twenty years at that rate would have taxpayers recoup only $28,220 of their $212,000 loan to Suzy.

So basically, Obama is expanding student loan enslavement to taxpayers from the student who borrows. The student will still have a student loan bill but eventually it will get passed on to the taxpayer, which basically puts America on pace for socialized state-sponsored college. I wonder what these students will think when budgets determine who gets to go to college and who doesn't. They won't be cheering Obama at that point, but of course he will be long forgotten about.