Obama to forgive government workers' student debt; stick your children with the bill

This is insane:
He proposed instituting a cap on student loan payments for people carrying massive debt. Payments will be limited to 10 percent of income. Obama also said the program will forgive remaining debt after 10 years of payment for public-service workers and 20 years for everyone else.

Another huge giveaway to the fatcat public employee unions at the expense of future generations. So you take out a $70,000 loan for a four-year liberal arts degree, then get some government job paying $40,000 a year. You pay only $4,000 a year, which barely even covers the interest, and then after 10 years the debt is just piled onto the national debt with the other trillions.

Nice work if you can get it.


Negocios Loucos said...

You get that degree in 2 years? This is also a payoff to academia who have inflated the cost education to a prohibative level. They know that without these loans, half the colleges in the country go out of business, or the professeurs start making what their knowledge is worth, although most of the time that would be bumped up to minimum wage. Regardless $70,000 will almost cover 2 years at these fine institutions of learning

Anonymous said...

The system in place would rather push debt as a means of payment as opposed to cash savings because studies show that people will spend more when allowed to use credit over cash. I'm waiting for the arrival of a mainstream school that gives a substantial discount for the payment of tuition and fees when the payment is made in cash. Don't know that it doesn't already exist.


Anonymous said...

business week article about university endowments


university endowments

ubu roi said...

NL is spot on, the university is the biggest bubble going in the US, raising rates beyond inflation and well beyond anyone's ability to pay for their "services." They've ingratiated themselves into every level of society so that you require their imprimature to wash windows; and the only way it can be financed is through government loans, loans that cannot be defaulted on when you find out that what you make can't even begin to repay what you owe. The money train fuels the university bubble.

As for government workers getting their debt forgiven after 10 years, but the private sector takes 20, that tells you all you really need to know about this administration. You can easily dance around the edges of that debt for a decade, and get the majority of the loans dismissed. What kind of government do you have when everyone works for the government?

Nailed it

Twitter (X) : To be fair, though, I thought they'd come up with someone more appealing than Cackles Harris.