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Obama Buys Votes By Easing College Loans

From an uncharacteristically honest Associated Press:

Obama college loan plan aims at an old voting bloc

By KIMBERLY HEFLING, AP Education Writer
October 25, 2011

WASHINGTON (AP) — Seeking to shore up support among cash-strapped college graduates and students struggling with rising tuition costs, President Barack Obama is outlining a plan to allow millions of student loan recipients to lower their payments and consolidate their loans.

Well, to its credit, the AP reporter here does not sugarcoat why Obama is doing this. He is using taxpayer money to buy the votes of college students and graduates.

Which is why Obama gave himself dictatorial power over the student loan process in the first place.

Outside of mortgages, student loans are the No. 1 source of household debt. Young voters were an important bloc in Obama’s 2008 campaign, and student loan debt is a common concern among Occupy Wall Street protesters.

After all, these poor kids were duped into making these loans by those evil colleges banks.

Obama’s announcement, to take place Wednesday in Denver, comes the same day a new report is being released by the College Board. It shows average in-state tuition and fees at four-year public colleges rose $631 this fall, or 8.3 percent, compared with a year ago. Nationally, the cost of a full credit load has passed $8,000, an all-time high.

Given that we are told there is no inflation, why should college costs be constantly going up? Could it be that the (largely unionized) teachers are getting higher and higher wages?

It seems to us that other countries throughout history have been able to indoctrinate their youths fairly inexpensively.

Meanwhile, as we have previously noted, many colleges, such as the Ivy League, are making out like bandits on evil Wall Street, getting over 20% yearly returns on their investments. And they don’t even have to pay taxes. (But don’t tell the OWS protesters.)

The White House said Obama will use his executive authority to provide student loan relief in two ways.

First, he will accelerate a measure passed by Congress that reduces the maximum repayment on student loans from 15 percent of discretionary income annually to 10 percent. The White House wants it to go into effect in 2012, instead of 2014. In addition, the White House says the remaining debt would be forgiven after 20 years, instead of 25. About 1.6 million borrowers could be affected.

Hilarious. So these kids won’t have to keep paying off their loans after 20 twenty years instead of 25. That will make them vote for Obama for sure.

(The sad thing, though, is that few of them will ever read past the headlines. If they even read the headlines.)

Second, he will allow borrowers who have a loan from the Federal Family Education Loan Program and a direct loan from the government to consolidate them into one loan. The consolidated loan would carry an interest rate of up to a half percentage point less than before. This could affect 5.8 million more borrowers

The White House said the changes will carry no additional costs to taxpayers.

Apparently, it will come out of the hides of the evil banks that were stupid enough to make college loans in the first place. That will teach them!

Last year, Congress passed a law that lowered the repayment cap and moved all student loans to direct lending by eliminating banks as the middlemen…

And giving all power to the Obama administration. Now we know why.

Increases in federal aid have helped ease the burden on students dealing with tuition increases, the White House Council of Economic Advisers said in a report Wednesday.

"Despite large increases in the published price of college over the past four years, the average student has not seen commensurate increases in the net price of college, defined as the published price minus grants, scholarships and tax benefits," the report said

In other words, Obama is only to happy to funnel more an more money into the Democrat indoctrination machine known as ‘higher education.’ And why not? It’s a great investment for the party, and its only taxpayers (and Chinese) dollars.

Oh, and another thing we should not tell the kids of the OWS. As we noted a couple of weeks ago, Obama is also stepping up harassment of those who are not paying back their government loans on time. After all, that money is his. And re-election time is rolling around.

This article was posted by Steve on Wednesday, October 26th, 2011. Comments are currently closed.

7 Responses to “Obama Buys Votes By Easing College Loans”

  1. untrainable says:

    If the government made the loans (or is now responsible for them) and Barry says they don’t have to pay them back anymore… how exactly does that NOT cost taxpayers money?

  2. canary says:

    Obama stopped college summer grants and most college students are aware of this.

    Luckily the generation who will be allowed to vote for the first time will be simple minded and just remember his free education, computers, etc for each child.

    Teacher turned politician Obama sure milked their paying college loans until his decision to run for president. Maybe Warren Buffet paid their student loans off.

    Old news really. He already said this with “strings attached” like performing government service and no missed or behind payments.

  3. Petronius says:

    SG : “Given that we are told there is no inflation, why should college costs be constantly going up?”

    Until now we have enjoyed the economic benefits that flow from low priced Chinese goods. However, the price of everything (except housing) that does not come from Asia –– college tuition, health care, oil, utilities, groceries, you-name-it –– has been going up, up, up.

    This has been happening while Americans’ real wages and disposable income have been declining since 2008.

    This is now changing –– and not for the better.

    China is reporting 6% inflation, with food and labor inflation even higher. (If the Chinese government reports 6% inflation, the true figure is no doubt substantially greater.)

    These inflationary pressures in China are having an effect in the USA through imported inflation. Recent import price inflation has been running over 10%. This means the American consumer is going to be squeezed even more.

    Good working definition of a conservative : Someone who understands that things could always be worse than they are.

  4. Mithrandir says:

    Socialist Playbook # 125 invent problems, then rush in to solve them.
    ~The socialists run the universities, jack-up the costs, give forgiveness loans, special grants to their voting blocs, make others pay full tuition. It’s all an ally-oop pass to their political buddies so they can slam it in, even though the problem and solution originated from the same team.

    #126 DON’T allow Republicans to solve problems, then when the socialist is elected, rush in to solve them. You see more of that these days, Democrat governors dismissing union demands, changing pension rules like in California. If a Republican did that, they would march and riot in the streets, but when they are in office, it’s a problem they can have the “courage” to solve.

    Scott Walker has absolute courage, he does what is right despite the near-rioting from public union parasites.

  5. River0 says:

    This is so typical of financially illiterate Democrats. They created the problem by funneling massive amounts of money to ‘solve’ it, without increasing the supply. They’ve always been unable or unwilling to understand markets, which means the 18th century thinker Adam Smith was light years ahead of them in reasoning power.

    Education is expensive because there is a limited supply and no competition. Encouraging the creation of more educational institutions would drive down the price.

    This is what they did with housing also; creating a self-destructive bubble with Federal money.

  6. BannedbytheTaliban says:

    “Outside of mortgages, student loans are the No. 1 source of household debt.”

    Actually, Taxes are the No.1 source of debt. Even above and beyond mortgages.

  7. GetBackJack says:

    Mithrandir – how right you are.

    I’m sure you’re familiar with this Congressional Record, but if not –

    Congressional Record–Appendix, pp. A34-A35

    January 10, 1963

    Current Communist Goals



    Thursday, January 10, 1963

    Mr. HERLONG. Mr. Speaker, Mrs. Patricia Nordman of De Land, Fla., is an ardent and articulate opponent of communism, and until recently published the De Land Courier, which she dedicated to the purpose of alerting the public to the dangers of communism in America.

    At Mrs. Nordman’s request, I include in the RECORD, under unanimous consent, the following “Current Communist Goals,” which she identifies as an excerpt from “The Naked Communist,” by Cleon Skousen:

    [From “The Naked Communist,” by Cleon Skousen]


    1. U.S. acceptance of coexistence as the only alternative to atomic war.

    2. U.S. willingness to capitulate in preference to engaging in atomic war.

    3. Develop the illusion that total disarmament [by] the United States would be a demonstration of moral strength.

    4. Permit free trade between all nations regardless of Communist affiliation and regardless of whether or not items could be used for war.

    5. Extension of long-term loans to Russia and Soviet satellites.

    6. Provide American aid to all nations regardless of Communist domination.

    7. Grant recognition of Red China. Admission of Red China to the U.N.

    8. Set up East and West Germany as separate states in spite of Khrushchev’s promise in 1955 to settle the German question by free elections under supervision of the U.N.

    9. Prolong the conferences to ban atomic tests because the United States has agreed to suspend tests as long as negotiations are in progress.

    10. Allow all Soviet satellites individual representation in the U.N.

    11. Promote the U.N. as the only hope for mankind. If its charter is rewritten, demand that it be set up as a one-world government with its own independent armed forces. (Some Communist leaders believe the world can be taken over as easily by the U.N. as by Moscow. Sometimes these two centers compete with each other as they are now doing in the Congo.)

    12. Resist any attempt to outlaw the Communist Party.

    13. Do away with all loyalty oaths.

    14. Continue giving Russia access to the U.S. Patent Office.

    15. Capture one or both of the political parties in the United States.

    16. Use technical decisions of the courts to weaken basic American institutions by claiming their activities violate civil rights.

    17. Get control of the schools. Use them as transmission belts for socialism and current Communist propaganda. Soften the curriculum. Get control of teachers’ associations. Put the party line in textbooks.

    18. Gain control of all student newspapers.

    19. Use student riots to foment public protests against programs or organizations which are under Communist attack.

    20. Infiltrate the press. Get control of book-review assignments, editorial writing, policymaking positions.

    21. Gain control of key positions in radio, TV, and motion pictures.

    22. Continue discrediting American culture by degrading all forms of artistic expression. An American Communist cell was told to “eliminate all good sculpture from parks and buildings, substitute shapeless, awkward and meaningless forms.”

    23. Control art critics and directors of art museums. “Our plan is to promote ugliness, repulsive, meaningless art.”

    24. Eliminate all laws governing obscenity by calling them “censorship” and a violation of free speech and free press.

    25. Break down cultural standards of morality by promoting pornography and obscenity in books, magazines, motion pictures, radio, and TV.

    26. Present homosexuality, degeneracy and promiscuity as “normal, natural, healthy.”

    27. Infiltrate the churches and replace revealed religion with “social” religion. Discredit the Bible and emphasize the need for intellectual maturity which does not need a “religious crutch.”

    28. Eliminate prayer or any phase of religious expression in the schools on the ground that it violates the principle of “separation of church and state.”

    29. Discredit the American Constitution by calling it inadequate, old-fashioned, out of step with modern needs, a hindrance to cooperation between nations on a worldwide basis.

    30. Discredit the American Founding Fathers. Present them as selfish aristocrats who had no concern for the “common man.”

    31. Belittle all forms of American culture and discourage the teaching of American history on the ground that it was only a minor part of the “big picture.” Give more emphasis to Russian history since the Communists took over.

    32. Support any socialist movement to give centralized control over any part of the culture–education, social agencies, welfare programs, mental health clinics, etc.

    33. Eliminate all laws or procedures which interfere with the operation of the Communist apparatus.

    34. Eliminate the House Committee on Un-American Activities.

    35. Discredit and eventually dismantle the FBI.

    36. Infiltrate and gain control of more unions.

    37. Infiltrate and gain control of big business.

    38. Transfer some of the powers of arrest from the police to social agencies. Treat all behavioral problems as psychiatric disorders which no one but psychiatrists can understand [or treat].

    39. Dominate the psychiatric profession and use mental health laws as a means of gaining coercive control over those who oppose Communist goals.

    40. Discredit the family as an institution. Encourage promiscuity and easy divorce.

    41. Emphasize the need to raise children away from the negative influence of parents. Attribute prejudices, mental blocks and retarding of children to suppressive influence of parents.

    42. Create the impression that violence and insurrection are legitimate aspects of the American tradition; that students and special-interest groups should rise up and use [“]united force[“] to solve economic, political or social problems.

    43. Overthrow all colonial governments before native populations are ready for self-government.

    44. Internationalize the Panama Canal.

    45. Repeal the Connally reservation so the United States cannot prevent the World Court from seizing jurisdiction [over domestic problems. Give the World Court jurisdiction] over nations and individuals alike.

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