I thought this information was important in the ongoing blog discussion about student loan forgiveness. I think people are focusing too much on ‘people not having to pay’ instead of looking into the details of the program. Many people, think that student loans come from private banks. Not most of them. Obama changed the student loan program in 2010. “Now, instead of having banks use government money to loan tuition, the government will lend the funds directly.”
“All federal student aid programs – which include student loans, Pell Grants and work-study, for example – are funded by federal tax dollars paid by U.S. citizens.
Each year, Congress appropriates money to fund these programs as part of the annual budget process. Once the budget is finalized – passed by both the House of Representatives and Senate – and signed into law by the president, Congress electronically transfers the money from the Department of the Treasury to the Department of Education.”
In my original post I was writing from the point of view that banks were screwing people over. But it turns out it is THE GOVERNMENT who is screwing people over with never-ending daily compounded interest and Social Security check garnishment. First they are screwing the taxpayer by giving out money from the treasury for loans (is that Constitutional?) and then they are screwing the borrower with the interest rates. The government also owns the 10 student loan servicing companies!
It’s all unconstitutional! The entire federal student loan program should be scrapped. I wish people would wake up to the depths of our government’s corruption, especially the Progressive Democrat agenda which was greatly advanced by Obama.
As I said before, I think the ultimate goal is ‘free college for all‘, which sane people know as ‘socialism’. And I am not for socialist policies. However I don’t think it’s right for Conservatives to get so upset about this plan and not about the many other socialist plans that have been in play since the the Depression.
One common complaint is that “I paid my way and you should, too.” Underneath this logical statement is the emotion that they feel like they should NOT have paid their own way. In other words they feel like they got cheated for doing the right thing. But that is not true. They did the right thing. Good for them!
Yes, the public is getting cheated in many ways. This plan is not fair. But you can still feel proud that you did the right thing.
Why does student loan forgiveness spark outrage and other socialist programs don’t ? I think it’s because it’s much more public than the energy subsidies and education funding and other things that people are willing to pay for because they assume the programs ‘benefit society’.
In theory, a better educated society would benefit everyone. So maybe we should have free college? But that doesn’t work in a capitalist economy that is based on competition and LIMITING competition through the use of the education and licensing system.
The real problem is that half the people think life should be ‘fair’ and the other half think ‘life’s not fair’.
If you really think about it, the student loan program is a TAX. It’s another welfare program that increases the federal budget that only benefits certain people. It’s simply income redistribution, which is not new, but is reaching new heights since Obama.
I think Biden opened a can of worms, but most people are not going to try to understand it all.
I look forward to the the discussion!