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The PJ Tatler

by
Rick Moran

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June 8, 2014 - 3:32 pm

While the rest of us are arguing about Sgt. Bergdahl, President Obama is sneaking through another presidential decree.

This one has to do with student loan forgiveness — a nice little gift to a constituency that the president wants to turn out on election day next November.

Businessweek reports:

U.S. President Barack Obama will move tomorrow to ease monthly payments for people with student loans, according to a White House official.

Obama, in executive action coordinated with a legislative push by Senate Democrats, will direct the Department of Education to expand the number of people who can take advantage of a law capping payments on federal direct loans to no more than 10 percent of their monthly incomes.

“I’ve heard from too many young people who are frustrated that they’ve done everything they were supposed to do — and now they’re paying the price,” Obama said yesterday in his weekly address.

What price are they paying? The price of of being dumb enough to take on enormous amounts of debt before they even have a job? Or are they paying a price for majoring in bowling management or puppetry and thinking they will get a job that will allow them to pay off that debt?

The action marks the latest effort by Obama’s administration to advance policies by executive action after being stymied on Capitol Hill. With the help of several cabinet heads, the president has spent much of this year initiating modest changes in programs that may provide a boost to Democrats in advance of the midterm elections.

Obama’s action tomorrow will expand a 2010 law that tied payments to income, according to the White House official, who said an additional 5 million people who took out loans before October 2007 or haven’t borrowed since 2011 will be eligible.

The proposal aligns with a bill from Senate Democrats that would allow individuals to refinance their student loan debt at current rates. Democrats have argued that the $1.2 trillion worth of outstanding student-loan debt retards economic growth as young college graduates are forced to postpone home buying or other purchases.

Senator Elizabeth Warren, a Massachusetts Democrat and sponsor of the bill, called student-loan debt levels “truly an emergency circumstance.”

Republicans have opposed the proposal, which would be paid for through tax increases on wealthy individuals, and are likely to block its passage.

“This bill doesn’t make college more affordable, reduce the amount of money students will have to borrow, or do anything about the lack of jobs grads face in the Obama economy,” Senate Minority Leader Mitch McConnell, a Kentucky Republican, said in a statement.

In a preview of the political message Democrats will advance this week, Obama said in his weekly address that lawmakers will have to choose whether to “protect you from crushing debt, or protect tax breaks for millionaires.”

The president and the Democrats are acting as if college kids who took out huge loans are victims. No doubt millennials love to hear that. Anything is better than admitting to yourself that you’re an idiot to get yourself into a situation where you can’t pay back what you owe.

The way to protect yourself from crushing debt is not to take on more debt than you can reasonably expect to pay back. This is what the grown-ups do — or some of us, anyway. How many student loan scofflaws actually had a good notion of what their salary would be the first few years after they graduated before they took out a loan? Apparently, not enough.

Certainly the lack of good-paying jobs is part of the problem. But it would help matters greatly if more students who wanted to go to college figured out a way to pay for it without taking on massive amounts of debt. Is there a law that says you have to start college at age 18? Why not work for three or four years, start a little later, and take on less debt? This was not an uncommon option before government got into the student loan business.

Anything is better than the system we have now.

Rick Moran is PJ Media's Chicago editor and Blog editor at The American Thinker. He is also host of the"RINO Hour of Power" on Blog Talk Radio. His own blog is Right Wing Nut House.

Comments are closed.

Top Rated Comments   
Don't knock bowling management and puppetry majors. At least these are actual skills (however obscure) which allow the graduate to do SOMETHING better than other people, and they are perhaps transferable to other more marketable fields -- small-business management or acting, I suppose.

The problem isn't the few dozens of bowling management majors per year - for all I know the economy needs that many new bowling arcade managers per year, too. It's the hundreds of thousands of graduates in "Women Studies", "Queer Theory", and the like.
27 weeks ago
27 weeks ago Link To Comment
Bad messaging. Obama and the small c communists are offering candy and these responses are offering tooth extractions.

If I was advising Republicans, I would offer "federal loan forgiveness", given to students whose income does not make the 10% threshold...and I would pay for it by taking money from federal government pensions, union dues and salaries of government workers making six figures or more.

Forgive the interest entirely for anyone who doesn't make the 10% threshold and pay for it by taking back the money from the contractor who botched Obamacare.com website, the Solyndra contact, and from the unions who got preferences in the GM case.

Give MORE...just pay for it by taking it from the correct places. Political judo/Kung fu...use the momentum of your opponent to execute your throws.
27 weeks ago
27 weeks ago Link To Comment
It's the Gov's fault that college is so expensive in the first place.
27 weeks ago
27 weeks ago Link To Comment
All Comments   (34)
All Comments   (34)
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Lord deliver us from Barack Obama.
27 weeks ago
27 weeks ago Link To Comment
Let's not forget that "college" nowdays includes ( for Gubbmint Debt purposes ) cosmetology, truck driving, dog grooming, aviation mechanics......etc etc schools.

Even working class "students" are serfs.
27 weeks ago
27 weeks ago Link To Comment
No different that the HUD housing debacle that destroyed Detroit
27 weeks ago
27 weeks ago Link To Comment
It's fun reading these cures for our ills. It's all BS of course. We can't afford any of it. People write of trade-offs. We've nothing to trade - our economy is based on borrowing. Until we can decide what priorities are worth funding through taxes, it's all total BS.

When reality strikes, it's gonna hurt like hell.
27 weeks ago
27 weeks ago Link To Comment
Some of the Occupy folks were complaining that we aren't like Germany, where a university education is not only free, but includes a stipend. Of course, what they don't realize is that 90% of Germans are not allowed to become university students. Most are weeded out of the university-prep path in middle school and shunted toward a useful technical education. There is the minor problem that among the 10% who do make it in, there is an incentive to stay a professional student, since they ARE actually paid to be there.

Of course, the 40-50% of high school graduates who wouldn't have the opportunity to party for 4 years at their parent's expense and future personal debt would be kind of upset about missing out.

I'd say 10% was a better number, but I know that would cut out far too many who turn out to be brilliant and successful.
27 weeks ago
27 weeks ago Link To Comment
The University system is a cartel that is perpetrating a fraud on young people with the Federal Government aiding and abetting. This is lifetime indentured servitude and is a tragic waste of a generation by progressives.
27 weeks ago
27 weeks ago Link To Comment
Let's not forget that employers share some of the blame for this "everyone HAS TO HAVE a Bachelors Degree" ill-founded notion. This is largely due to the "de-evolution" of the "Human Resources Dept.". They make the errant assumption that a B.S./B.A. is required for EVERYTHING. The first WISE employer will start implementing either "competency testing" or "competency interviewing" (or a combo of both) & forget about the requirement of a B.S./B.A. degree. MOST home-schooled & private schooled high school grads would likely ace these tests & get the job. LOTS of college degree holders would not...so we need to COMPLETELY re-think BOTH "job readiness" AND education, which (sadly) are NOT one & the same.
27 weeks ago
27 weeks ago Link To Comment
Every attempt to do so has been met with lawsuits and attacks from the DOJ concerning "disparate impact." IQ testing of any type can no longer be used. Academic achievement (however attenuated) is a secondary source and possibly a poor substitute.
27 weeks ago
27 weeks ago Link To Comment
Don't knock bowling management and puppetry majors. At least these are actual skills (however obscure) which allow the graduate to do SOMETHING better than other people, and they are perhaps transferable to other more marketable fields -- small-business management or acting, I suppose.

The problem isn't the few dozens of bowling management majors per year - for all I know the economy needs that many new bowling arcade managers per year, too. It's the hundreds of thousands of graduates in "Women Studies", "Queer Theory", and the like.
27 weeks ago
27 weeks ago Link To Comment
Senator Elizabeth Warren, a Massachusetts Democrat and sponsor of the bill, called student-loan debt levels “truly an emergency circumstance.”

The truly emergency circumstance is that Obama's coattails are threatening to drag down a legion of Democrat party candidates in the 2014 elections. Warren is showing off her knowledge of Chicago politics - and demagoguery - by using student debt relief as a blatant bribe to minimize the electoral damage those candidates will suffer.
27 weeks ago
27 weeks ago Link To Comment
The title sounds snarky but I guess it is true...it is a sovereign decree. We have no alternative to this right?
27 weeks ago
27 weeks ago Link To Comment
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