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CBO: Feds siphoning billions from student loan program to fund Obamacare
Callous Reform ^ | 6-28-2013 | Josiah Ryan

Posted on 07/02/2013 6:47:46 AM PDT by markomalley

The Affordable Care Act is set to cost students enrolled in the government’s loan program $8.7 billion in extra interest over the next decade, according to a report published by the non-partisan Congressional Budget Office (CBO).

If savings were kept inside the loan program, instead of transferred to Obamacare, as some Republican senators are suggesting, they could allow the Department of Education to lower student interest rates to 5.3 percent from 6.3 percent, according to the CBO.

The nearly $9 billion being used to fund Obamacare is derived from $61 billion the government says it will save by administering student loans in-house.

Late last month former secretary of education and ranking member of the

According to a report from the CBO, Obamacare is costing students enrolled in

Senate Committee on Health, Education,

the government's loan program an extra $8.7 billion in interest.

Labor and Pensions Lamar Alexander (R-Tenn.) seized on the diversion of the funds as one solution for lowering student interest rates, which are set to double on Monday.

“The Congressional Budget Office estimates that if we applied that $61 billion savings to student loans, we could have reduced the interest rates to about 5.3 percent and save the average student $2,200 over 10 years,” said Alexander, speaking from the Senate floor.

(Excerpt) Read more at campusreform.org ...


TOPICS: Extended News; Government
KEYWORDS: 0carenightmare; cbo; obamacare; obamacarecosts; studentdebt; studentloans
Funny that we didn't get this from the MSM...I'm sure just a coincidence, though.
1 posted on 07/02/2013 6:47:46 AM PDT by markomalley
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To: markomalley

Proving Nancy Pelosi a Sage once again “You have to readu it to find out what’s in it”.


2 posted on 07/02/2013 6:49:46 AM PDT by Hotlanta Mike ("Governing a great nation is like cooking a small fish - too much handling will spoil it." Lao Tzu)
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To: markomalley
and save the average student $2,200 over 10 years,”

They'll drink more than that in beer..........

3 posted on 07/02/2013 6:51:13 AM PDT by Red Badger (Want to be surprised? Google your own name......Want to have fun? Google your friend's names........)
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To: markomalley

4 posted on 07/02/2013 6:51:35 AM PDT by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: markomalley

I saw on the news yesterday that student loan interest rates are going to - or have doubled? So much for the admitted foreign born twice unconstitutionally elected POTUS promising to lower student debt! OMG he lied to us! lol!


5 posted on 07/02/2013 6:51:39 AM PDT by GrandJediMasterYoda (Someday our schools will teach the difference between "lose" and "loose")
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To: markomalley

We didn’t get it from the CBO, either, when they were scoring Obamacare as a deficit reducer.


6 posted on 07/02/2013 6:52:13 AM PDT by Dahoser (Separation of church and state? No, we need separation of media and state.)
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To: markomalley
More proof that Obamacare is slavery, and now it's enslaving anybody with more student loans than they can ever repay.

Reminder: Student loans are the ONLY debt that cannot be discharged in bankruptcy.

See how that works?

7 posted on 07/02/2013 6:53:17 AM PDT by E. Pluribus Unum (Who could have known that one day professional wrestling would be less fake than professional news?)
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To: markomalley

Sorry. It looked good when I previewed it.

Anyway, let’s try again:

“The Affordable Care Act is set to cost students enrolled in the government’s loan program $8.7 billion in extra interest over the next decade, according to a report published by the non-partisan Congressional Budget Office (CBO).

If savings were kept inside the loan program, instead of transferred to Obamacare, as some Republican senators are suggesting, they could allow the Department of Education to lower student interest rates to 5.3 percent from 6.3 percent, according to the CBO.

The nearly $9 billion being used to fund Obamacare is derived from $61 billion the government says it will save by administering student loans in-house.”


8 posted on 07/02/2013 6:55:15 AM PDT by markomalley (Nothing emboldens the wicked so greatly as the lack of courage on the part of the good -- Leo XIII)
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To: markomalley

So, college students (mostly O-voters) get screwed two ways: with higher student loan interest rates, and higher health insurance premiums?


9 posted on 07/02/2013 7:01:12 AM PDT by rightwingintelligentsia (Truth/Lies; Liberty/Tyranny--WHAT DIFFERENCE DOES IT MAKE??)
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To: Red Badger
"and save the average student $2,200 over 10 years...”

In ten years, Sandra Fluck (how is it spelled?) thinks she'll spend $36K on contraception.

10 posted on 07/02/2013 7:05:04 AM PDT by Steely Tom (If the Constitution can be a living document, I guess a corporation can be a person.)
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To: markomalley
Everyone is missing the big point here. Our government has put an end to a vibrant student loan market and replaced it with a government-run monopoly. Before, it was the lending institutions that had to come up with the front money to lend to prospective students. Now, it is the government that has to come up with that money. So in no way is this a money-maker for government. The $8.7 billion in interest the government hopes to gain will be more than offset by government losses and administrative costs.

As with any monopoly, the consumer ends up with higher costs and less service. And THAT is what is at stake here. Government will now charge 6.8% interest on student loans, yet still will not come close to breaking even. Meanwhile, former lenders have been forced out, resulting in less jobs, and less choice and higher costs for consumers.

On a personal note, I took out student loans in 2005 and 2006 from one of many private lenders that were competing for my business at the time. I settled for one of those lenders, and today my current interest rate on those loans is 2.39 %. Students taking out loans today have but one lender - Uncle Obama. They don't get a choice in rates. They are instead forced to take the government monopoly rate. And to think that most of these young idiots actually voted for this.

11 posted on 07/02/2013 7:07:49 AM PDT by Hoodat (BENGHAZI - 4 KILLED, 2 MIA)
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To: markomalley

BWA-HAHAHA!!

Voted Commie and got the shaft! Couldn’t happen to a more deserving bunch.

“Hope and Change” y’all!


12 posted on 07/02/2013 7:07:57 AM PDT by Darteaus94025
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To: markomalley

Overwhelmingly, those kiddies supported the community organizer. Actually it is sweet irony. Their student loans get hi and they have to pay massive insurance premiums while they use few medical services. LOL


13 posted on 07/02/2013 7:10:04 AM PDT by Proud2BeRight
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To: Steely Tom

Fluke......as in ‘mistake’ or a whale’s fin............


14 posted on 07/02/2013 7:10:19 AM PDT by Red Badger (Want to be surprised? Google your own name......Want to have fun? Google your friend's names........)
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To: GrandJediMasterYoda

QUINNs FIRST LAW: Liberalism always generates the exact opposite of its stated intent.


15 posted on 07/02/2013 7:13:18 AM PDT by Dutch Boy
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To: markomalley

Labor and Pensions Lamar Alexander (R-Tenn.) seized on the diversion of the funds as one solution
**********
And therein lies the problem. Too many “solutions” from the government. One failed scheme after another.

Why the public believes in all these self-serving, hair brained schemes is beyond me. I guess you can fool most of the people most of the time...


16 posted on 07/02/2013 7:16:18 AM PDT by Starboard
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To: Hoodat

The $8.7 billion in interest the government hopes to gain will be more than offset by government losses and administrative costs.
********
Right you are. Seriously, the associated feral agencies will consume that amount and more in a New York minute. Most of it will probably go to paying for lavish government “training” conventions in places like Las Vegas and Anaheim. LOL


17 posted on 07/02/2013 7:23:53 AM PDT by Starboard
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To: Hoodat
Back in the 1960s, a college education was something everybody could afford, with state colleges and universities being quite selective and cheap. Those who weren't qualified didn't go to college.

Then the nutty federal loans and construction programs (with loans) for colleges started. More buildings meant the need for more students. Loans and grants to the neediest meant that costs could rise. It didn't take long for it to get bloated, and college lost its appeal as a place where people could go and develop their minds and adult capabilities.

Now, college seems hardly worth it. If someone can work those years instead of getting loans, they're probably better off getting a job out of HS from a company that promotes from within If they acquire a lot of knowledge and skills along the way, and take advantage of free or very inexpensive training options, that just makes more sense today.

18 posted on 07/02/2013 7:24:46 AM PDT by grania
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To: markomalley

Smoke and mirrors, cooking the books, rob Peter to pay Paul...Obamacare is doing exactly as its designers envisioned, and it has nothing to do with health care.


19 posted on 07/02/2013 7:26:11 AM PDT by PowderMonkey (WILL WORK FOR AMMO)
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To: Dutch Boy

SO absolutely freakin’ true isn’t it? Just using as Obama as an example, EVERYTHING he promised when he was unconstitutionally campaigning for POTUS has turned out to be the exact opposite instead. “Peace in the middle east - Absolute anarchy instead with Al Qaeda now controlling two formerly neutral countries” or “Reform healthcare - absolute anarchy to our health system” and “lower unemployment - unemployment almost doubled” just on and on and on...Lower gas prices? Gas prices tripled. You could sit here for hours naming all the stuff that has turned out exactly the opposite of what he said.


20 posted on 07/02/2013 7:33:50 AM PDT by GrandJediMasterYoda (Someday our schools will teach the difference between "lose" and "loose")
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To: markomalley

It is why students are having a hard time getting student loans. They money seems to be missing. Last night the news was also saying interest rates were doubling due to shortages of money.


21 posted on 07/02/2013 7:36:44 AM PDT by CodeToad (Liberals are bloodsucking ticks. We need to light the matchstick to burn them off. -786 +969)
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To: markomalley

And no we know why he seized the student loan program.

And sadly, those who owe loans for a college degree will still be too stupid to understand this.


22 posted on 07/02/2013 7:37:21 AM PDT by autumnraine (America how long will you be so deaf and dumb to thoe tumbril wheels carrying you to the guillotine?)
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To: markomalley
The only sad part about watching the recipients of redistribution fight over "who gets how much" is that we ALL know how it will end... HIGHER TAXES to allow both sides to get what they want.
23 posted on 07/02/2013 7:52:58 AM PDT by Roccus
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To: markomalley

If they had any brains (a highly debatable proposition, I grant you) the GOP could be making FAR greater inroads with young Obama voters by waving this little factoid under their noses than they will EVER gain with Hispanics from amnesty.


24 posted on 07/02/2013 8:15:56 AM PDT by Buckeye McFrog
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To: rightwingintelligentsia

As my grandmother would say.....let them wallow in it.


25 posted on 07/02/2013 8:32:57 AM PDT by sheana
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To: Starboard

As for consuming any profits, Obamacare is hiring tens, possibly a hundred thousand “navitagors” to coax the new insurance applicants through the grueling application process. California alone says it may need 21,000 navigators, plus translators for Spanish, Vietnamese etc. They could earn $20/hr plus. Spread that around the whole country, add in the lavish navigator training seminars and now you’re talking real money.


26 posted on 07/02/2013 8:58:26 AM PDT by Sender (It's never too late to be what you might have been.)
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To: Proud2BeRight

Enjoy your Hoax & Chains kids.


27 posted on 07/02/2013 9:32:04 AM PDT by TurboZamboni (Marx smelled bad & lived with his parents most his life.)
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To: Sender

Not to mention the huge money being spent by the numerous agencies implementing, operating and maintaing Obamacare (and collecting voluminous data on your every personal detail). We are talking serious spending here, even by government standards. The government will continue the spend-a-thon until it can’t.


28 posted on 07/02/2013 9:37:17 AM PDT by Starboard
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To: markomalley

bookmark


29 posted on 07/02/2013 8:49:26 PM PDT by Free Vulcan (Vote Republican! You can vote Democrat when you're dead...)
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