Student Loan Debt A Progessive Tool For Control

When Mr Obama took over the student loans business from the banks his sole purpose from the beginning was to take control of the lives of the students and it has worked perfectly. Students now after getting easy money from the government now have to pay it back but they don't have any hope of doing that as there are no jobs, another plan of Mr Obamas for control. "I'm focused like a laser beam on jobs". That was fours years ago and there are still millions unemployed and increasing by the thousands every month.

The strategy is perfection in it's simplicity - make as many people dependent on the government for their survival promising them help if they vote the right way, knowing all the while there will be no help as the government is broke. And as the number of workers actually employed and paying taxes drops, and those demanding more free stuff goes up, there will be no money left after Mr Obama takes his cut to pay for the free stuff.

The big question that remains, just what thinking process, using logic and common sense, did those that voted for the progressive socialists Democrats use when electing him and his minions twice?

Of course they didn't us anything like logic or common sense, it was about believing they would continue to get more free stuff, as promised, if they elected and reelected the 'giver of free stuff'. Is this the future of our country, more and more people believing it is their right to receive without doing anything to deserve help, all they have to do is vote the right way?

Student Loan Forgiveness Not the Answer
Source: Andrew Heaton, "Your Student Loan Shall Not Be Forgiven," Foundation for Economic Education, May 3, 2013.
May 13, 2013

After years of unlimited federal student loan making, student loan debt now totals more than $1 trillion. This tremendous debt load saddles many new graduates with large monthly payments in a tough job market. Many students hope that Uncle Sam will soon forgive their loans. Student loan forgiveness is popular among recent grads and even among some politicians, though the loans will never be forgiven, says Andrew Heaton of the Foundation of Economic Education.

• H.R. 1330, The Student Loan Fairness Act, proposes that recent graduates pay one-tenth of their disposable income for 10 years, after which their debt would be forgiven.
• Other graduates joke that President Obama will simply write off their loans altogether.

The problem with "debt forgiveness" is that the term means that someone else is paying your debt for you, not that the debt is wiped away entirely.  Because the federal government is funded by taxpayers, student loan debt forgiveness would mean that taxpayers would be picking up the tab for a large portion of total student debt.

• Loan forgiveness would essentially amount to a transfer from taxpayers to students, many of whom opted for expensive colleges and useless degrees as federal loans were easily available.
• The simple fact is that one way or another, student loans must be paid.
• Because they are not eligible for discharge in bankruptcy, a student loan sticks with an individual until it is paid off or until the individual dies.

One suggestion has been to make student loans eligible during a Chapter 7 bankruptcy, a proceeding that would render "true forgiveness," as opposed to "debt forgiveness," while at the same time blemishing an individual's credit rating for life. With this option on the table, graduates could weigh their options given their income and future ability to pay back the loan while future students might find it prudent to choose degrees with higher rewards.