Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Obama Calls Out ‘Millionaires’ to Pay for Student Loans
The Heritage Foundation The Daily Signal ^ | June 09, 2014 | Kelsey Harkness

Posted on 06/10/2014 6:08:08 AM PDT by LucianOfSamasota

Using his pen again in “this year of action,” President Obama today signed an executive order to ease the burden of student debt at the expense of “millionaires.”

The program, “Pay as You Earn,” expands an existing federal loan option available to undergrad and graduate students. It issues caps on monthly loan payments at 10 percent of the borrower’s discretionary income and forgives their remaining balance after 20 years.

For those working in public service or the government, any remaining debt is forgiven after 10 years. An estimated 5 million more borrowers will become eligible under the new plan. Before today, only those who took out loans after 2007 were entitled to “Pay as You Earn” benefits.

To finance the program, Obama proposed closing “tax loopholes” for the wealthy, or what he called “millionaires.”

“This should be a no-brainer,” he said today at the White House. “It would be scandalous if we allowed those kinds of tax loopholes for the very, very fortunate to survive while students are having trouble just getting started in their lives.”

(Excerpt) Read more at dailysignal.com ...


TOPICS: Crime/Corruption; Culture/Society; Government; Philosophy
KEYWORDS: loans; obamastudentloans; studentloans
Navigation: use the links below to view more comments.
first 1-5051-55 next last
Obama’s decision to bypass Congress with an executive order snubs Senate Republicans, who are debating alternative approaches they believe would address the fundamental causes of rising tuition costs.

Exactly how does this work, again? Where the President has the option to create or change legislation with impunity but without Congress?

1 posted on 06/10/2014 6:08:08 AM PDT by LucianOfSamasota
[ Post Reply | Private Reply | View Replies]

To: LucianOfSamasota
The program, “Pay as You Earn,” expands an existing federal loan option available to undergrad and graduate students. It issues caps on monthly loan payments at 10 percent of the borrower’s discretionary income and forgives their remaining balance after 20 years. For those working in public service or the government, any remaining debt is forgiven after 10 years. An estimated 5 million more borrowers will become eligible under the new plan. Before today, only those who took out loans after 2007 were entitled to “Pay as You Earn” benefits. To finance the program, Obama proposed closing “tax loopholes” for the wealthy, or what he called “millionaires.”

PFL

2 posted on 06/10/2014 6:11:07 AM PDT by Alex Murphy ("the defacto Leader of the FR Calvinist Protestant Brigades")
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota
Government workers only pay 10 Years?

The make more than the private sector.

3 posted on 06/10/2014 6:11:33 AM PDT by scooby321
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota

OBSCENE!!
I am busting my butt to get my kids through school debt free; and a bunch of LOSERS will have debt forgiven that I will pay for. And my kids. Infuriating.
These kids should get off their a$$es and work for their education.


4 posted on 06/10/2014 6:12:08 AM PDT by HereInTheHeartland (Obama lied; our healthcare died.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota

Mr. Mercat and I are such suckers. First thing we did when we had a little money was pay off our son’s student loans. Actually he paid off most of them when his grandmother left him some money. We are almost debt free including several rental properties. That’s how we roll.


5 posted on 06/10/2014 6:14:49 AM PDT by Mercat
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota

How about we call out students who allow themselves to be sucked into outrageous debt for the almighty degree. Sort of reminds you of a Congress that is doing the same thing for the “good of the country”, or could it be votes to remain in the lucrative office.


6 posted on 06/10/2014 6:15:12 AM PDT by wita
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota

My sons paid back their loans. They worked their butts off since getting out of college. They thought that was the American Way.


7 posted on 06/10/2014 6:15:47 AM PDT by Sacajaweau
[ Post Reply | Private Reply | To 1 | View Replies]

To: Alex Murphy

So the President can change the tax code?

Seems like Congress has some say on ‘tax loopholes’ regarding inheritance, capital gains, and income taxes?


8 posted on 06/10/2014 6:16:12 AM PDT by LucianOfSamasota (Tanstaafl - its not just for breakfast anymore...)
[ Post Reply | Private Reply | To 2 | View Replies]

To: LucianOfSamasota; fieldmarshaldj; Impy; GOPsterinMA; NFHale; BillyBoy; Liz; GOPJ
RE :”Using his pen again in “this year of action,” President Obama today signed an executive order to ease the burden of student debt at the expense of “millionaires.” The program, “Pay as You Earn,” expands an existing federal loan option available to undergrad and graduate students. It issues caps on monthly loan payments at 10 percent of the borrower’s discretionary income and forgives their remaining balance after 20 years.
For those working in public service or the government, any remaining debt is forgiven after 10 years. An estimated 5 million more borrowers will become eligible under the new plan. Before today, only those who took out loans after 2007 were entitled to “Pay as You Earn” benefits.
To finance the program, Obama proposed closing “tax loopholes” for the wealthy, or what he called “millionaires.”

OK, so he limits what they must pay back for their loans, then calls for congress to raise taxes which they wont. Does this mean less $$$ to loan out in the future?

What does the law say? (not that it matters to Dems)

9 posted on 06/10/2014 6:17:08 AM PDT by sickoflibs (King Obama : 'The debate is over. The time for talk is over. Just follow my commands you serfs""')
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota
President Obama today signed an executive order to ease the burden of student debt at the expense of “millionaires.”

Oh, I give up.
I bite on articles coming out of a satire site, and I dismiss as satirical reports that turn out to be factual.

America is a laughingstock shadow of our former self.

10 posted on 06/10/2014 6:17:59 AM PDT by grobdriver (Where is Wilson Blair when you need him?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mercat

If you are receiving something, you either earned it or you took it from someone who did.


11 posted on 06/10/2014 6:18:15 AM PDT by LucianOfSamasota (Tanstaafl - its not just for breakfast anymore...)
[ Post Reply | Private Reply | To 5 | View Replies]

To: LucianOfSamasota

0 is a multi millionaire how much is he and mooch putting in? The clintons?


12 posted on 06/10/2014 6:19:17 AM PDT by GailA (IF you fail to keep your promisesI to the Military, you won't keep them to Citizens!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota

Public sector is again, favored. And what of those “studies” degrees? And “...capped at 10% of discretionary income.” What’s the formula for that? More ways to game a system for money rather than reward achievement and excellence. THAT is what 0bama is all about.


13 posted on 06/10/2014 6:20:38 AM PDT by kdot
[ Post Reply | Private Reply | To 1 | View Replies]

I assume he’s referring to Hairy Roid too?


14 posted on 06/10/2014 6:22:38 AM PDT by Kevin in California
[ Post Reply | Private Reply | To 13 | View Replies]

To: Sacajaweau

I’m still paying mine.


15 posted on 06/10/2014 6:24:00 AM PDT by corlorde (forWARD of the state)
[ Post Reply | Private Reply | To 7 | View Replies]

To: LucianOfSamasota

My eldest has a student loan hanging over his head from ITT, they have NO record he attended, no grades. He did attend 2 semesters, I have the single piece of paper with his grade points on it. YET they never heard of him.


16 posted on 06/10/2014 6:25:23 AM PDT by GailA (IF you fail to keep your promisesI to the Military, you won't keep them to Citizens!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GailA

It does not go into effect for 6 months tis a good thing we have the GOP to fight against it and thwart it. LOL J/K


17 posted on 06/10/2014 6:25:25 AM PDT by vicar7 ("Polls are for strippers and cross-country skiers" Sarah Palin)
[ Post Reply | Private Reply | To 12 | View Replies]

To: LucianOfSamasota

what a joke
this millionaire’s African relatives don’t even have indoor plumbing

preach it brother- into a mirror


18 posted on 06/10/2014 6:26:20 AM PDT by silverleaf (Age takes a toll: Please have exact change)
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota
It issues caps on monthly loan payments at 10 percent of the borrower’s discretionary income and forgives their remaining balance after 20 years.

Paying bills is not part of "discretionary income." What this does is to take the payment of a student loan out of the realm of an obligation and puts it in the same basic realm as money for cigarettes, booze and drugs.

If you got it, then you might want to pay it. If not, no big deal, in 20 years it will be paid in full even if you never pay a dime.

Unbelievable.

Someday the term "Bizzaro World" will be replaced in the Lexicon by "Obama World."

19 posted on 06/10/2014 6:26:26 AM PDT by P-Marlowe (There can be no Victory without a fight and no battle without wounds)
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota

Should the Federal Student Loan Program be closed to future debt in June, 2014, or in July, 2014?


20 posted on 06/10/2014 6:28:19 AM PDT by Graewoulf (Democrats' Obamacare Socialist Health Insur. Tax violates U.S. Constitution AND Anti-Trust Law.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sacajaweau

I had three part time jobs to cover my expenses at Iowa.


21 posted on 06/10/2014 6:30:41 AM PDT by Eric in the Ozarks (Rip it out by the roots.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Alex Murphy
A middle-class couple nearing retirement without a $million in assets (paid off house plus 401K) will not be able to maintain a middle-class standard of living in retirement.

THESE are the people that the Dems are coming after.

22 posted on 06/10/2014 6:31:48 AM PDT by PapaBear3625 (You don't notice it's a police state until the police come for you.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: LucianOfSamasota

This can in no way be legal.


23 posted on 06/10/2014 6:38:10 AM PDT by Don Corleone ("Oil the gun..eat the cannoli. Take it to the Mattress.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota

“It issues caps on monthly loan payments at 10 percent of the borrower’s discretionary income and forgives their remaining balance after 20 years”

What a fricking joke, let me guess whom determines what that 10% discretionary income number is. This is just a bailout.


24 posted on 06/10/2014 6:41:04 AM PDT by DAC21
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota
Secretary of Education Arne Duncan: "...the administration doesn’t currently know how much the expanded payment cap will cost. We’ll figure that out on the back end.”

POF to Mrs. POF: "Honey, I don't currently know how much that Bugatti Veyron Super Sport will cost. But don't worry, we'll figure that out on the back end."


25 posted on 06/10/2014 6:41:59 AM PDT by ProtectOurFreedom
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota
...discretionary income...

Who makes the decision of what is discretionary? The gubment? The earner? It's all a bunch of bullshit! If you borrow money to go to college, PAY IT BACK!

26 posted on 06/10/2014 6:42:40 AM PDT by Bushbacker1 (Molon Labe! (Oathkeeper))
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota

How the Hell does he get away with it? Why doesn’t another branch call him out on these outrageous actions and infringements? All we get are a couple of mealy-mouthed responses and then it fades away after a day or two.

What infuriates me is this whole problem with leftist-run universities tripling their prices in 30 years all because their students can get “free” money from the government. If there were no student loans at all, then higher education would be affordable, just like it used to be. As soon as you get the damned government involved, everything turns to sh!t. Just like health care — “free” care makes it totally unaffordable.

We scrimped to get our kids through college and they came out with very small loans they can pay off in short order. To this day, my wife drives a 17 year old Explorer we bought new. We would’ve loved to have bought a new car somewhere along the line, but we planned for our kid’s futures instead. I just love being played for a sucker by government.


27 posted on 06/10/2014 6:49:31 AM PDT by ProtectOurFreedom
[ Post Reply | Private Reply | To 8 | View Replies]

To: LucianOfSamasota
Seems like Congress has some say on ‘tax loopholes’ regarding inheritance, capital gains, and income taxes?

I was wondering that as well..... That's how things USED to work??

28 posted on 06/10/2014 6:56:42 AM PDT by SomeCallMeTim ( The best minds are not in government. If any were, business would hire them!)
[ Post Reply | Private Reply | To 8 | View Replies]

To: LucianOfSamasota

10% of DISCRETIONARY income...

That means, just keep on adding to your debt for 20 years, and you won’t have to pay ANY of it back.

Good grief!


29 posted on 06/10/2014 6:58:42 AM PDT by SomeCallMeTim ( The best minds are not in government. If any were, business would hire them!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota
Seems like Congress has some say on ‘tax loopholes’ regarding inheritance, capital gains, and income taxes?

Yes, so why don't they speak up?

30 posted on 06/10/2014 7:01:09 AM PDT by skeeter
[ Post Reply | Private Reply | To 8 | View Replies]

To: LucianOfSamasota
what a rip off of the american taxpayer!!

so all those women who go to astronomically expensive ivy league colleges using loans, who then get married and stay home with the kids.... will never have to repay a SINGLE CENT under this plan!!??

because they never earn a salary 10% of zero is ... zero! and 20 years of zero ... is ZERO!

31 posted on 06/10/2014 7:01:46 AM PDT by TexasFreeper2009 (Obama lied .. the economy died.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota

What King Barack is basically saying is (yet again) your money is not yours. It is up to the state as to how to spend you ill-gotten gains. You owe your life to the state. All hail the state! And King Barack.


32 posted on 06/10/2014 7:02:59 AM PDT by driftless2 (For long term happiness, learn how to play the accordion.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Don Corleone
This can in no way be legal.

What's legality got to do with it? This is the Reign of Obama, Lord of the 57 state strong USA Banana Republic, where Executive Orders get things DONE!

33 posted on 06/10/2014 7:08:33 AM PDT by TADSLOS (The Event Horizon has come and gone. Buckle up and hang on.)
[ Post Reply | Private Reply | To 23 | View Replies]

To: LucianOfSamasota
"Exactly how does this work, again? Where the President has the option to create or change legislation with impunity but without Congress?"

Well, until he and his cadres are stopped, he has all the authority in the world. Every day that he goes unchallenged and continues to expand executive authority, he moves a step closer to full on tyrant. Obama is following the Hugo Chavez model and he is close to becoming a Latin American style maximum leader.

34 posted on 06/10/2014 7:10:17 AM PDT by Truth29
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota

kinda takes the profit motive out of student loans, eh? I like it.

I can’t stand these ponytail beer-gutted morons that call themselves “professors” pigging out at the trough, working less than 40 hour weeks, junketing during summers, spring and Christmas breaks and pulling down more than 100K/year

So, if kids want to go to college and not pay it back, so what?


35 posted on 06/10/2014 7:14:20 AM PDT by yldstrk ( My heroes have always been cowboys)
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota

So does this mean I don’t have to keep funding my daughters 529 college fund? Just let her get a loan and the government will forgive the balance after 20 years.


36 posted on 06/10/2014 7:18:45 AM PDT by martinidon
[ Post Reply | Private Reply | To 1 | View Replies]

To: yldstrk

Um....the pony tailed professors have already been paid. Its the banks, or the gubmint guarantee behind the loan (you and me) that gets stiffed.

This program will actually encourage more to go to college (with no plans of paying it back), and the pony tailed professor gets even more dough.


37 posted on 06/10/2014 7:20:07 AM PDT by lacrew (Mr. Soetoro, we regret to inform you that your race card is over the credit limit.)
[ Post Reply | Private Reply | To 35 | View Replies]

To: LucianOfSamasota

What tax loophole is he referring too?


38 posted on 06/10/2014 7:22:26 AM PDT by RginTN
[ Post Reply | Private Reply | To 1 | View Replies]

To: lacrew

nope nope, there will be a drying up of school loans because no one has to pay them back, they have been turned into grants, so there will be a related drying up of slush to go around to the pony tailed “professors”


39 posted on 06/10/2014 7:23:53 AM PDT by yldstrk ( My heroes have always been cowboys)
[ Post Reply | Private Reply | To 37 | View Replies]

To: LucianOfSamasota

WHAT???? He’s got to be kidding, where is Congressional oversight??


40 posted on 06/10/2014 7:25:01 AM PDT by 1Old Pro
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota

I think he might be on to something.

A millionaire buys the loan from a bank after the student signs indenture papers. The student then becomes the millionaire’s indentured employee until the loan is paid according to the terms of the promissory note.

It would seem to be a good solution for both parties.


41 posted on 06/10/2014 7:26:37 AM PDT by bert ((K.E. N.P. N.C. +12 ..... History is a process, not an event)
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota

So it starts, they punishment of savers.

Why do they hate?


42 posted on 06/10/2014 7:28:11 AM PDT by cicero2k
[ Post Reply | Private Reply | To 1 | View Replies]

To: ProtectOurFreedom

Your bride told me you should go for it!


43 posted on 06/10/2014 7:29:06 AM PDT by LucianOfSamasota (Tanstaafl - its not just for breakfast anymore...)
[ Post Reply | Private Reply | To 25 | View Replies]

To: yldstrk

Remember - the student loan system has essentially been nationalized. So, any rational market response to loans not being paid back that you are envisioning....will not happen.

They will accelerate...’for the children’.

I can already see the scam now. Little Johnny gets a gazillion dollars in loans (much of which goes to the pony tailed professor), and he gets his gubmint job, to limit himself to 10 years payback. The terms of his salary, benefits, colas, allowances, etc. will be specifically tailored towards not being considered ‘income’ for the purposed of the 10% calculation. And there may even be a balloon bonus for 10 years of loyal service (deferred compensation).

I can even see ‘government service’ being morphed into ACORN like jobs, since they are ‘getting out the vote’.

Its a new opportunity for political money laundering.

And we will pay for it...Obama has already telegraphed his intent - the evil millionaires will pay for it.


44 posted on 06/10/2014 7:31:17 AM PDT by lacrew (Mr. Soetoro, we regret to inform you that your race card is over the credit limit.)
[ Post Reply | Private Reply | To 39 | View Replies]

To: LucianOfSamasota
Obama Calls Out ‘Millionaires’ to Pay for Student Loans

You first, O-buttwipe.

45 posted on 06/10/2014 7:36:30 AM PDT by Sicon ("All animals are equal, but some animals are more equal than others." - G. Orwell)
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota

Notice how all these solutions do everything they can to ensure the money keeps flowing without cessation to the schools and without any accountability or responsibility on the schools’ part. God forbid they might have to fire an Associate Dean for Diversity.


46 posted on 06/10/2014 7:47:06 AM PDT by RonF
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota

You first, 0bama0, since you’re a millionaire.

And LEADERS GO FIRST!

That’s why they call them LEADERS!


47 posted on 06/10/2014 7:50:31 AM PDT by Westbrook (Children do not divide your love, they multiply it.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: LucianOfSamasota

Use the common sense approach: Like Social Security, Medicare, Medicaid, Welfare, Food Stamps, and other federal largess, make them all block grants to the individual states. Fixed amounts that they can spend as they choose.

If we really want to be mischievous, bundle them together into a single block amount, and leave it up to the states to determine who gets what.


48 posted on 06/10/2014 7:51:57 AM PDT by yefragetuwrabrumuy ("Don't compare me to the almighty, compare me to the alternative." -Obama, 09-24-11)
[ Post Reply | Private Reply | To 1 | View Replies]

To: HereInTheHeartland

I’m in the same boat and feel the same way.

In addition many of my kids friends are pretty much getting a free ride anyway.

The MC/UC gets to pay full ride.


49 posted on 06/10/2014 7:56:09 AM PDT by crusher2013
[ Post Reply | Private Reply | To 4 | View Replies]

To: Alex Murphy
For those working in public service or the government"...

AKA The Nomenklatura.

50 posted on 06/10/2014 8:17:51 AM PDT by TurboZamboni (Those who make peaceful revolution impossible will make violent revolution inevitable.-JFK)
[ Post Reply | Private Reply | To 2 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-55 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson