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 ...
Proving Nancy Pelosi a Sage once again “You have to readu it to find out what’s in it”.
They'll drink more than that in beer..........
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!
We didn’t get it from the CBO, either, when they were scoring Obamacare as a deficit reducer.
Reminder: Student loans are the ONLY debt that cannot be discharged in bankruptcy.
See how that works?
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.”
So, college students (mostly O-voters) get screwed two ways: with higher student loan interest rates, and higher health insurance premiums?
In ten years, Sandra Fluck (how is it spelled?) thinks she'll spend $36K on contraception.
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.
BWA-HAHAHA!!
Voted Commie and got the shaft! Couldn’t happen to a more deserving bunch.
“Hope and Change” y’all!
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
Fluke......as in ‘mistake’ or a whale’s fin............
QUINNs FIRST LAW: Liberalism always generates the exact opposite of its stated intent.
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...
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
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.
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.
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.
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