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Obama To Take Over All Student Loans

From a giddy as a school girl Associated Press:

Obama touts plan to change college loan system

By Philip Elliott, Associated Press Writer

WASHINGTON – President Barack Obama on Friday renewed his call for the government to stop backing private loans to college students and replace them with direct financial aid to young people

The administration has pushed for federal financial aid to go directly to students, not to banks that lend money to students. Obama said he wants to eliminate the "middle men" lenders that he says add inefficiency to the system — "that’s a premium we cannot afford, not when we could be reinvesting that same money in our students, in our economy and in our country."

Obama wants to end the decades-old, dual system the federal government uses to advance loans to students to pay for college. Under that system, students at some colleges borrow directly from the government, while others get loans from banks, non-profits or state agencies who in turn receive subsidies from Washington.

The president’s proposal would switch the federal student loan system entirely to direct lending from the government.

Obama has claimed that the change would save at least $48 billion over the next 10 years — money that could be funneled to student aid

Obama also noted the plan would be tough to pass.

"The banks and the lenders who have reaped a windfall from these subsidies have mobilized an army of lobbyists to try to keep things the way they are. They are gearing up for battle. So am I," Obama said

Note how subtlety the Associated Press propagandizes:

[T]he president repeated his campaign proposal that would eliminate the Federal Family Education Loan program that costs taxpayers $15 million each day.

We are told that the current program costs taxpayers $15 million dollars each day, but no where is it reported what the new program will cost taxpayers – or why it should be less.

And, indeed, there is nothing in this article to indicate that dealing directly with the US Government would make these loans less expensive or more cost effective. Let alone save $48 billion dollars.

What Mr. Obama’s program will do is make more students and parents more directly dependent upon the federal government.

And of course that is the ultimate goal in everything Mr. Obama does.

"The banks and the lenders who have reaped a windfall from these subsidies have mobilized an army of lobbyists to try to keep things the way they are. They are gearing up for battle. So am I," Obama said.

And note how anyone who dares to oppose this radical new program is smeared as a lobbyist for bankers.

There can never be an honest disagreement with Mr. Obama. Not even on an issue as seemingly innocuous as student loans.

You are either with him, or you are a criminal.

This article was posted by Steve on Friday, April 24th, 2009. Comments are currently closed.

32 Responses to “Obama To Take Over All Student Loans”

  1. Odie44 says:

    “The banks and the lenders who have reaped a windfall from these subsidies

    Doesn’t he mean the businesses who made a profit due to rules and regulations in place?

    This is the same charade with the credit card company’s. Bambi is stepping in to take control over “costs” that folks are complaining about paying, sort of like an ARM that adjust’s up. If he is willing to call is own folks “stupid” for not understanding basic lending principles, well good for him and them…

  2. U NO HOO says:

    My mind is boggled.

    Back in the stone age I had a student loan, I paid it back with interest.

    How did it cost anyone else anything?

  3. JohnMG says:

    …..”The president’s proposal would switch the federal student loan system entirely to direct lending from the government.

    Obama has claimed that the change would save at least $48 billion over the next 10 years — money that could be funneled to student aid…”

    Have you ever seen ANYTHING the government took over save anyone any money?

    Me neither!

  4. Colonel1961 says:

    I’m a criminal.

  5. MinnesotaRush says:

    To echo JohnMG’s comments ..

    “Obama said he wants to eliminate the “middle men” lenders that he says add inefficiency to the system ..”

    Yeah righhhhht! Is there any doubt that the government is able to do ANYTHING without a host of ‘inefficiencies’ associated with it?!?!

    It’s all about power and control.

    I’m wondering when he’ll start to do his job instead of polking his nose into everything else and everywhere else he doesn’t belong.

    Like the growing nuclear crisis in Pakistan. Like the North Korean launch. Like Americans being held in not so friendly lands. Etc, etc.

    Trojan Horse!

  6. U NO HOO says:

    But….didn’t we just eliminate DC schools vouchers?

  7. pdsand says:

    Maybe I’m old-fashioned, and think that the President should be worrying about the problems that America has to deal with, ie terrorists and pirates and bears chasing pregnant women in Colorado Springs. I know that the agenda with Obama is socialism and state control of everything, and not necessarily, ‘what’s best for America’.
    But honestly, did anybody hear someone complain that the student loan system in this country is “inefficient”, or “wasteful”? Or that any bank who is taking a subsidy to offset the fact that many borrowers will not finish school and will default on their loans is doing so in a greedy or untoward manner?
    Not the least of the matter, this is not even a problem that I have ever heard anyone complain about, and it’s definitely not a high priority that I’ve heard the President should be trying to drive change on. Maybe a U.S. Representative’s staff member might consider this their pet project, but is it really a Presidential concern?

    • Rusty Shackleford says:

      pd, there are several mechanisms at work here.

      I’ll go out on a limb and start with the tea parties. Given his self-love attributes and his oh-so-righteous strut everywhere he goes, and that he’s constantly surrounded by the boot-licking media and lovers of all things “o”…I will say that the tea parties, once he got wind of them kind of shook his foundation a little and probably had him reaching for his hard-pack of KOOL menthols.

      People with this type of personality, when they discover they are not liked by someone, will “do stuff” to either retaliate, or show that they can “do stuff”. In this case, it is hard to figure if it’s a spiteful move or just something he wanted to do anyway (because he can–see: “I won”) and thus “prove” to us groundfeeders that he’s the mo-fo-whut’s-in-chawge.

      Or it could be as simple as he found something he could manipulate, so he did.

      Remember, this president is not about consequences, good or bad. He is about power and thus, everything he sees looks like a nail when the only tool he has–is a hammer.

      Sometimes, though, I like to think that the American people, when suitably ticked off, take action…either with passive-aggressiveness, or out-and-out disagreement, as in the tea-parties, or…if pushed far enough, civil disobedience. After all, say what you will about Vietnam, there was a loud outcry and well….GovCo. listened, after a fashion.

      No, O will never listen or entertain the notion that he’s ever done anything wrong. He just simply isn’t wired properly to understand and comprehend the Constitution. He is a moral vacuum and has never really fought for a cause of any kind. Instead, he’s the little snot in the classroom that steals your calculator when no one was looking, or spreads rumors about others, etc etc. He is about underhanded, crappy little things that get people ticked off and then sitting back and enjoying the mess.

      It’s called an instigator and it fits with the democraps plans to distract, annoy and divert attention away from what they are really doing. It’s not an exact science so they are testing and poking and trying things to see what causes the water to boil and what they can get away with relatively unnoticed. They want the big things to happen stealthily and thus, commit the minor things to distract. They also want to see that which polarizes the public the most. Many have said and I tend to agree that the post tea-parties “Save 100 million” ploy was just that.

      Finally, I know I’ve said it and I heard it repeated by a caller on Rush’s show today that “The hippies of the 60’s are now in charge and they have no more credibility now than they did then.”

      Part of the problem is well, take a hypothetical cartoon strip, where the hippy comes over for dinner and starts talking to the conservative family and they have no idea what he’s talking about. Conversely, the conservative family has a conversation and the hippy is fundamentally lost. The last frame of the cartoon has them both saying, “I don’t understand you” and that’s where we sit as a nation.

      Pelosi speaks in that fried-brain language that only other hippies can understand…and it’s mostly emotionally based. Facts, figures, real numbers and legitimate statistics give way to emotionally biased made up numbers and “data” that has no basis in fact. But the liberals “get it” and they “feel the vibe” mainly due to the impact of the words used, false though they may be.

      But when a conservative tries to speak plainly to them, their brain goes back to a time when their parents tried to explain to them right and wrong and how things work and why smoking dope is bad and communal living is BS. Mainly because they had to live through WWII and/or fight in it and because they worked to get to a point where they could raise a family of ungrateful, spoiled rotten kids. And the liberal’s brain clouds over in that comfortable THC-induced haze and they cannot hear or understand logic. Only emotion, man.

      Barry is kind of a loose example of some of that. I’m the same age as him but while he was listening to hate speech, I was putting nukes on F-4’s in Germany. Obviously, my perspective and most certainly, my upbringing is vastly different from his. To me, he represents the spoiled, rotten, hater of all things United States because he JUST DOESN’T UNDERSTAND it.

      The worst part is, as always, he thinks that he does. All he sees is all this money the US has and maybe he said to himself when he was 19, “Man…if I hads me all dat munny, I’d be givin’ it to all the peeps whut needs it”. And, to him, perhaps, this is the result of a fantasy come true. He gets to look like the great giver and redeemer of all that’s bad in the US but because he never understood what makes and made this nation great, by the fact that he’s been taught to hate it under false history lessons and having the gaps filled in by angry blacks, etc., he can never truly find a track that will help this nation flourish.

      There is precious little that he understands, except what things look like to him on the surface. And his cronies verbalize it and he’s comforted by the fact that he must be right in his assessment. Thus, he can not believe he’s wrong. Even if the nation’s economy collapses all around him due to his manipulations, to say nothing of the power grabs, he will never comprehend failure. Failure is what “other people” do. I read that when this administration comes up with a “miracle”…it will then have to come up with more miracles to repair the miracle that is now failing. The parallel to lying is perfect.

      But again, I have droned on far too long. I am beyond frustration..and as the years pass…while we take this agonizing trip down the socialist trail…I don’t know if I’ll be alive to see it get better and healthy again. It took decades to unravel Carter’s rat’s nest of crap…and we’re still trying to get the gum off our shoe that is Bill (effing) Clinton.

      What I hope for every day is that this car salesman of a president, this shoe clerk, does something so outrageously stupid that even the MSM reels in shock and says “Whaaaaa?”

      Sadly, I think that will become a “dream of my grandchild”. More than likely, in Japan, you’ll be able to buy, in the coming decade, books with titles like, “The Implosion Of The Great Social Experiment; What Went Wrong And How It Happened”.

      Ex-patriots from the US will be living in Australia, South America maybe, other nations that will suddenly be less-socialist than than even this one in the coming years.

      Dismal picture? Yup…if we don’t try to fix it. I still have the Audacity to Hope that this uberkinder of a president falls in an open manhole and is never heard from again.

      Sorry…I must stop now. I have truly gone on too long.

    • Steve says:

      You make some great points, RS.

  8. 12 Gauge Rage says:

    Don’t you see what’s going on here? To the young, idealistic, and horribly naive Obama will be the coolest president ever because he gave them everything they wanted. From that point on they’ll be forever indebted to him with no regrets. And they’ll voice their support for him at election time. In a nutshell Obama is buying the votes of our youth and therefore consolidating his power. Only a small fraction of students will see this ploy for what it is.

    • caligirl9 says:

      And no one is talking about the elephant in the room—not everyone is smart enough to truly earn a college degree. It used to be an achievement for those who worked hard and studied diligently—not for just any marginal student who decides he or she wants to hide out for another 4 or 5 years and get a degree in sociology and avoid/put off adulthood as long as possible.

      In Mexico, college is a privilege. It should be something to work for, and something worth working for. How many college grads know a damn thing nowadays? Granting student loans should be based on potential for achievement, not just providing a place to hide out.

      And think about Octomom here in California. Her $50K in college loans allowed her to pay for her in vitro treatments … if that’s not system abuse, what is?

    • Liberals Make Great Speedbumps says:


      There was a lot of truth in the old saying “He/she’s just not college material” even if it isn’t PC.

  9. artpa says:

    Also hidden here is control of curriculum for schools who did not previously accept federal loans, thus their full control, but bank loans were ok… Like Grove city college in the Pittsburgh area, one of the best.

    By the way, at another college, on tuition of almost $30,000/year, the federal student loan max they determined was $2600/year and it requires the most invasive of forms be filled out by both parents, custody or not, and be sent to the govt before you can qualify for anything.

    • pdsand says:

      You’re on it. Universities already get a big chunk of their regular budget from the feds. Then they apply for federal funding of their research projects. They get a big block of funding from the states, but the states are getting their money from the feds through the porkulus. If the part of the budget that traditionally came from private sources, the tuition and fees, starts to come from the fed, then universities in this country will be darn close to 100% federal funded.

  10. StevefromMKE says:

    I notice not a thing is mentioned about the costs of going to a university these days. Is that the “middlemen” at fault there Obama?

  11. pdsand says:

    Of course it bears repeating. If you are in the business of making student loans and you profit from them being repaid with interest, then you cannot make a “windfall profit” from that business. You make a plain old regular profit.

  12. jrmcdonald says:

    You take the money, and he tells you what to major in and what school to go to. If you fail to meet expectations – when and if they are released and subject to change at Obama’s whim – you will have to ‘work’ off your debt in a National ‘volunteer’ program.

  13. Melly says:

    Welcome to Cuba comrades.

  14. proreason says:

    It’s another power grab, plain and simple.

    There is a new thread every day.

    This isn’t being managed by people who work for the government. It is far too fast and furious a pace to by handled by the limitted staff allowed for a POTUS.

    There are hundreds if not thousands of NON-GOVERNMENT people who are making this shit happen.

    You didn’t vote for them. They are being paid by people who have no electoral accountability whatsoever. They are likely funded by enemies of this country, or, at the very least, people opposed to the principles on which this nation is founded.

    • heykev says:

      Your exactly right Pro. It’s a power grab plain and simple. Berry has surrounded himself with peeps from the Clinton years. The administration realized that these first few days are precious for getting their Socialist agenda moving and moving quickly. Since we have these crises’ he’s (ok Axlelrod) decided to get his whole agenda, EVERYTHING accomplished now before people realize what freedoms they have lost and how far we’ve moved to Socialism.

      I also believe he’s getting assistance both in $$ and people/organizations as well as his marching orders from George Soros. It’s a vast left wing conspiracy. No, really it is.

    • canary says:

      Pro, yes, “too fast and furious”. And deliberately wreckless. It’s like the Democrats are having a party like there is no tommorrow, and as if they will never be held accountable.
      heykev, yes. A conspiracy. The media was in on it. Whatever sells. Magazine cover after after cover. Deceptive headlines. The media controls the world.
      The media won’t give Republican leaders any coverage, and without a voice the public thinks everything must be fine. It’s all beyond the leftists’ wildest dreams, and they went in for the kill.

  15. Anonymoose says:

    Hmmmmm…….my student loans, that have kept me indebted for a decade and a half, are from Sallie Mae. Notice the resemblance to Fannie?

    I don’t blame anyone but myself for getting buried up to my neck, ‘tho I honestly thought an advanced degree would help my life. And Miss Government backed Sallie has been more forgiving of times I had to forebear my loans and has a lower interest rate than those from a private company. I’ve heard some bad stories about people who got their loans from one of the companies and were sacked with sky-high interest rates.

    But Barry’s not talking about that, is he? He wants it “more efficient,” more savings for more money? Is this the fabled Democrat compassion or a way to make more money—-isn’t the problem people borrowing more than they can afford period? Kids today are taking loans and working 2-3 jobs to make it by in college, and Obami wants a piece of the action? Heaven help us…..

    And Rusty, I couldn’t agree more. The latter day hippies are analog people trying to understand a digital world. They feel, and that’s all, and their identity is what they believe. They won’t question their beliefs because that means questioning what frail sense of self they have.

    They also can’t get their heads around the idea that there’s so much money in the US we just have to give it all away, never mind they start doing that and there won’t be any money or people wanting to earn it just to have it redistributed.

    I just hope I get my loans paid off before this fiasco also hits the fan.

    • Rusty Shackleford says:

      Yup, yup and yyyup. When Castro said the big O was “superficial” I nearly fell over in my chair. That superficiality which a lot of people have, disables them from seeing past anyone’s veneer, which we all have. If he met Ronald Reagan in one of his western outfits, he’d say…”Yeah, I met Ron Reagan….he’s a cowboy, right?” He makes his assessments not in any thoughtful way, but solely based on skimming the surface information…or..occasionally the information as he’s been told. I doubt he would ever say to any of his “advisors”, “Wait a minute. You say that what we need to do is spend more money? Wouldn’t that cause us to print more money, thus causing staggering inflation?”.

      No, he would never look past the obvious and dig deeper. He’s not a “dig-deeper” kind of guy. If a clever man came up to him and said, “Mr President, there is no way I could possibly respect you more than I do right now.” He would never pick up on the double entendre. He would say, “Hey, I appreciate that…right back atcha”. But it wouldn’t be a clever retort..it would be an “I love me soooooo much” response.

      Student loans are actually some of the most forgiving of loans. I have been boondoggled by a couple and they have worked with me.

      But yeah, people and that now deeply embedded and reinforced sense of entitlement are a problem. “I wants me my house…my car…and you gives me one o’ dem….edjicashins too. It’s my RIGHT”.

      Um, no……it’s not.

      One small addendum to my already long winded tirade. Our media…not just the newsies…but the whole sitcom thing, etc. TV’s are as affordable as…oh…say basic rations during a hurricane…so it’s safe to say that everyone has it. Then, when the poor see middle America being middle America, they are truly mystified as to how people get that way. Some probably think it’s all made up, other than the show itself, of course. But the context is lost. Someone who’s a cop on TV..becomes their idea of a cop. OK, bad example. Will Smith…a street thug from Philly sent to LA to live with his rich uncle and lives a life of Reilly or…Raffiki, or whatever..and they see it on TV..and they want it but have no idea how to get it.

      So when some slick talkin’ dude comes along and tells them it’s their right….they believe him. And that, perhaps, is one of the biggest moral crimes in the history of mankind. And, that is why that slick talker orders $100 dollar/lb beef, his wife has a full time face-painter, and on and on. He is saying….to the poor especially…”See, I’m sooooo better than you”. And sadly, the poor do not see that he’s rubbing their noses in it. Because, as Rush has said Monday, Tuesday and Wednesday, “They are emotionally attached to this president”. So much so that they are blind to the reality that they are being played as saps.

      This college loan thing? HA! Gonna come with a hefty pricetag. Watch as conservative students take on another job to pay for school before becoming part of the O-Borg-ma Collective. They would be smart to do so.

  16. JohnMG says:

    It really has little to do with efficiency. More like a shell game. If Obama can pull some of his hocus-pocus and make it seem like there is a savings, he’ll use that as an excuse to spend the “savings” on yet another socialist boondoggle. I’m sure a lot of you remember the vaunted “peace dividend” we reaped when the Soviet Union came apart. Democrats couldn’t wait to spend the “savings” on some social program. Never mind that the money appropriated for the cancelled defense projects didn’t exist. That too was deficit spending. Instead of not spending it and reducing the deficit, it all went to pork. Same thing’ll happen here.

  17. jobeth says:

    As so many of you have said…It’s all about control.

    I can easily foresee a time when he mandates that you “serve” some leftie project for so many years or you don’t get your loan.

    Snap! A whole body of slaves at his bidding!

    How many of our children will be able to meet higher and higher tuition rates? Especially after all the trade and cap fees push everything from toothpick and food, to cars and utilities so far out of sight everyone is struggling to put food on the table.

    Our kids and grandkids will be grabbed by the short hairs, as they say. Unable to say no to the mandates and signing the contract he pushes at them.

    Yep…control….of every aspect of our lives…and our grandchildren’s lives! Welcome to the new Amerika.

    • DGA says:

      You’re right JoBeth, this is the system to force young people into his servitude, his brownshirts etc. “I was nice enough to loan you this money, so now you will work for me as a full taxpayer paid acorn worker.” You’ll likely see systems in place where you get a full break on the interest if you participate in this servitude deal, only to come out of it years later with your young brain fried and washed with so much socialist crap you can no longer function in your chosen career, the one you just paid to learn, so will instead join his brownshirt corps full time.

      Like somebody above here said, it just gets worse every day. Another day, another socialist pile of crap we will have to pay for.

    • Rusty Shackleford says:

      Ahh, DGA, I’ll go ya one better. The loans will only go to those in certain undergraduate programs. Engineering, biochemistry, even pre-med where analytical thinking is a must…no. They will go to liberal arts majors, and to claim they are “in support of the sciences” they will give loans to paleontology majors and “African Studies” majors…and of course, by ALL means, journalism majors.

      Enrolled in ROTC? No soup for you.

      Like my granddad used to say. “Just watch and learn, boy….watch and learn.”

    • pdsand says:

      Particularly sinister. As already mentioned, the government already has a healthy influence over the student loan market through sallie mae, direct loans, and the subsidies. What he is talking about here is forbidding private lenders from making loans. The only reason for that is so that he has total control over the loans. Of course it’s already been mentioned, but it ties right in with Obama’s great desire for “volunteer” work from the young people in this country. My sister-in-law was just complaining about having to “volunteer” in order to graduate from high school in north carolina. And I think I heard a younger cousin talking about having to “volunteer” in order to get a driver’s license in Georgia. I think it’s about dang enough. I seriously think somebody whose kid has standing should sue because the constitution says that nobody can be held in servitude in this country except for punishment of a crime that they’ve been convicted of. I’m sure a lot of the kool-aid drinkers think that the best interests are being served, but it’s really not. The constitution is being violated, and of course the socialists are the only ones who benefit.

  18. JaneLovesJesus says:

    Central Planner doesn’t like anything to come between the Gov’t & the people increasingly more dependant upon it. The headline should be “Student Loan Program to be Nationalized.” That pesky middleman being cut out is private business. Why have any free enterprise at all? Aren’t we all dispensible middlemen living in Obama’s dictatorship?
    — sorry, I’m a little testy, no Rush-fix for 2 days straight & I’m getting the shakes —

  19. canary says:

    Amazing Obama uses such strong language towards Americans: “gruesome”
    actions by intelligence; the bankers wearing suicide packs’; right wing extremists; and now “They are gearing up for battle. So am I”

    Yet, Obama has no strong words or threats for our enemies. He sympathizes with them. He sympathizes with Bill Ayers and juveniles that menace. He offers Mexican drug cartel amnesty.

  20. pagar says:

    This isn’t being managed by people who work for the government. It is far too fast and furious a pace to by handled by the limitted staff allowed for a POTUS.

    That’s absolutely evident in all of these speeches we hear from him. My guess is George Soros has his people write all of them.

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