student loan interest payments actually goes to pay for ObamaCare

[Robert]

Recent speeches by Tennessee Republican Sen. Lamar Alexander highlight a connection that has yet to be reported in the media and is yet to be understood by the young people struggling with high interest rates in the hopes of financing their college education.

According to the Congressional Budget Office, $8.7 billion of the money collected in student loan interest payments actually goes to pay for ObamaCare. The CBO estimates that the interest rate on these loans could be reduced from 6.8 percent to only 5.3 percent were the funds not used to subsidize the healthcare reform law and other federal programs.

The profits from student loans are divided as follows: $8.7 billion goes to pay for ObamaCare; $10.3 billion goes to pay down the federal debt; and $36 billion goes to Pell Scholarship grants.

Alexander notes that the federal government borrows the funds for the student loan program at 2.8 percent and then lends it to the students at 6.8 percent, a markup of 4 percent.

Politically, how did the Republicans miss this issue in the last election? It is well to speak of fines that will be imposed on young people who don't buy health insurance, but these penalties are in the future and still seem abstract to people in their teens and twenties. But student loan payments are a daily present reality, standing in the way of the rest of their lives. They, alone among forms of debt, are not dischargeable in bankruptcy and stain their credit reports forever if they are not paid

http://thehill.com/opinion/columnists/dick-morris/302247-loans-subsidize-obamacare

[LL]

You gotta remember this

Nancy Pelosi Pass the Bill to find out what's in it


And for pete's sake

What difference does it make?

[Patrick]

Yep, to kinda quote one famous favorite lady of the democratic persuasion; what difference does it make now, lets make sure it doesn't happen again.

[Robert]

The President signed a new law that makes it easier for students to pay back their federal college loans. Starting in 2014, new borrowers will pay no more than 10 percent of their disposable income, and the President recently proposed accelerating this benefit for current students. The law also allows any remaining debt to be forgiven after 20 years. Those engaged in public-service professions—such as teachers, nurses, or members of the armed forces—will have any remaining debt forgiven after 10 years if they make their payments on time.

Obama hyped that he wants to help college students and in fact this was some of who voted for Obama. Well just like all his other hype this is all smoke and mirrors. He gave away trillions in the bail out to those at the top of society. I didn't see anything to help this sector of society along with homeowners for one. Next is big banks and businesses get money at 0 percent why do we have to charge our college students 6.5 percent? Its not fair, we need to encourage learning not shackle people with debt as they are starting out. This also hits in another way, the same students that cannot repay their loan will not be able to afford mandatory health care putting them in double jeopardy and fear of being arrested. Last people need to know this info, Why because we are being lied to and hyped someday it will be enough or we will fall knowing we allowed it to happen.

[Patrick]

new borrowers will pay no more than 10 percent of their disposable income,
end quote

Nice, but, how many young folks [or any folks today] have any disposable income ? [I sure didn't, but, paid my student loans anyway]. If anyone believes recent stats, average american wealth has dropped 45% over the past 6 or 7 years.

[czuch]

HAHAHAHAHAHAAA    SUCKERS!!!!!!!!!!!!!!!!
The coup is already in place. There is no end to the tunnel.

[Hooter]

HAHAHAHAHAHAAA    SUCKERS!!!!!!!!!!!!!!!!
The coup is already in place. There is no end to the tunnel.

  And there are no lights!

[Momz]

My Daughter graduated from Florida Institute of Technology last December, completely debt free. She now has dual degrees in astrophysics, as well as physics, and is currently working for NASA.

This September will start on her Doctorate at the University of Pennsylvania, all at taxpayers expense and through private endowments. Her stipend alone would be enough for the average American family. But her heath care insurance is taken care of by my wife's employer benefits.

Where else but here in the USA is hard work as appreciated and rightly so.

[Skinhead]

My Daughter graduated from Florida Institute of Technology last December, completely debt free. She now has dual degrees in astrophysics, as well as physics, and is currently working for NASA.

This September will start on here Doctorate at the University of Pennsylvania, all at taxpayers expense and through private endowments. Her stipend alone would be enough for the average American family. But her heath care insurance is taken care of by my wife's employer benefits.

Where else but here in the USA is hard work as appreciated and rightly so.

Yeah George, there are the two extremes, hard work, and no work.

While I commend your daughter on her achievements, ( no small accomplishment), the taxpayers are still footing the bill.  I think one of the biggest complaints the tax payers have, is not having a choice on who benefits from our hard work.  THE GOVERNMENT confiscates our money and doles it out as they see fit.  I would prefer to donate MY money as I see fit.

I wish your daughter continued success withe her education.

[Momz]

Skinhead,

Thank you for being so gracious.

[GiG]

Skinhead, Thank you for being so gracious.

Yeah, that Sinkhead is a regular Mother Theresa...

[Momz]

Well at least you didn't call him Stinkhead!

My daughter spent the summers of 2010 and 2011 working at he Fermi National Labratories in Batavia Illinios working on Government research projects. Last summer she did her research project at the U of M astrological labs.

No Obamacare;....I'd say the taxpayers are getting their monies worth.