Posted by: Debby Durkee | March 12, 2010

Student loan addition to health care bill.

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Student loan addition to health care bill.

What does health care have to do with student loans, you ask? Well, just how stupid can you be? The Democrats don’t want another controversial issue clogging up the news cycle, so they thought they’d just change the way student loans are provided in the country by slipping legislation into the already passed Senate health care bill once it returns to the Senate for reconciliation. If this seems totally bizarre and outrageous to you, then welcome to the new normal in Washington, D.C. Or maybe a better description would be: The Chicago Way of how a bill becomes a law. This is from Francis Cianfrocca at www.redstate.com.

…The Democrats are folding student-loan reform into the health bill so it can be enacted without 60 votes in the Senate.

… The two key features that reportedly will make it into the healthcare legislation are:

1)       Putting an end to the subsidized private student loan industry. Citibank, Sallie Mae and hundreds of others will be out of this business… From now on, the money will go directly from the Federal government to schools.

Senator Tom Harkin says this step is long overdue to stop wasting the taxpayers’ money. I say that if the government really wants to be a bank, they should first prove how they’re going to be any better at it than real banks are.

2)       Sharply increasing the maximum amounts of Pell grants for low-income students, and automatically indexing the maximums for inflation every year. Some eight million Pell grants are awarded each year. Economists have been saying since I was in college that federal supports for higher education are the reason that, as with healthcare, the costs have been rising at far more than the general rate of inflation for decades now. We’re going to be kicking those cost increases into a higher gear now.

Why attach this thing, which upends and federalizes a quite substantial industry, to the on-again, off-again healthcare reform effort? That’s easy. To avoid both a public debate of the issue, and also the need to get 60 votes to pass it in the Senate.

Read it all here: http://www.redstate.com/blackhedd/2010/03/12/student-loan-reboot-to-be-folded-into-healthcare-reform/

The same author wrote in detail about how Obama wants this all to work. Good grief, we’re in for it now. This is just another piece of the statism puzzle this administration wants to put into place. Spreading the wealth around is his middle name, and irresponsibility is his game. Here’s just a bit of what Obameducation will entail.

Obama reportedly now wants to put time and income-based limits on how much you have to pay back. Your student loans payments will be capped at no more than 10% of the amount by which your income exceeds a “basic cost of living” amount. And all your debts will be forgiven after 20 years if you work in the private sector, or 10 years if you have a government job.

Higher education is like healthcare in that payments to providers are already heavily subsidized by government. Also like healthcare, the cost of education is rising every year far more quickly than the general inflation rate. Obviously, higher education is an increasingly large burden on middle-class families.

But colleges and universities are also like hospitals and medical practices in another sense: with no built-in incentives to cut costs, they don’t cut costs. That’s the problem we ought to be looking to solve. Instead, Obama wants to create yet another middle-class entitlement that will quickly become permanent, and will permanently enrich a special class (educators) at society’s expense. And the special treatment given to government and “public service” workers is interesting too. Their loans expire after only 10 years rather than 20 years for everyone else.

How soon will we become like Greece if this becomes the law of the land and those who actually have to pay for it want to repeal it or the country can’t afford it? The “entitled” will be rioting in the streets trying to squeeze the last drop of blood from the taxpaying turnip. Read it all here: http://newledger.com/2010/01/obamas-wrongheaded-student-loan-plan/

Hat Tip: http://www.humanevents.com/

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