Skip to comments.Obama Calls Out ‘Millionaires’ to Pay for Student Loans
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 borrowers 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 ...
Exactly how does this work, again? Where the President has the option to create or change legislation with impunity but without Congress?
The make more than the private sector.
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$$es and work for their education.
Mr. Mercat and I are such suckers. First thing we did when we had a little money was pay off our son’s student loans. Actually he paid off most of them when his grandmother left him some money. We are almost debt free including several rental properties. That’s how we roll.
How about we call out students who allow themselves to be sucked into outrageous debt for the almighty degree. Sort of reminds you of a Congress that is doing the same thing for the “good of the country”, or could it be votes to remain in the lucrative office.
My sons paid back their loans. They worked their butts off since getting out of college. They thought that was the American Way.
So the President can change the tax code?
Seems like Congress has some say on ‘tax loopholes’ regarding inheritance, capital gains, and income taxes?
OK, so he limits what they must pay back for their loans, then calls for congress to raise taxes which they wont. Does this mean less $$$ to loan out in the future?
What does the law say? (not that it matters to Dems)
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.
If you are receiving something, you either earned it or you took it from someone who did.
0 is a multi millionaire how much is he and mooch putting in? The clintons?
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.
I assume he’s referring to Hairy Roid too?
I’m still paying mine.
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.
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
what a joke
this millionaire’s African relatives don’t even have indoor plumbing
preach it brother- into a mirror
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.
Someday the term "Bizzaro World" will be replaced in the Lexicon by "Obama World."
Should the Federal Student Loan Program be closed to future debt in June, 2014, or in July, 2014?
I had three part time jobs to cover my expenses at Iowa.
THESE are the people that the Dems are coming after.
This can in no way be legal.
“It issues caps on monthly loan payments at 10 percent of the borrowers 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.
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."
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!
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.
I was wondering that as well..... That's how things USED to work??
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.
Yes, so why don't they speak up?
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!
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.
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!
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.
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?
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.
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.
What tax loophole is he referring too?
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”
WHAT???? He’s got to be kidding, where is Congressional oversight??
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.
So it starts, they punishment of savers.
Why do they hate?
Your bride told me you should go for it!
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.
You first, O-buttwipe.
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.
You first, 0bama0, since you’re a millionaire.
And LEADERS GO FIRST!
That’s why they call them LEADERS!
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.
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.
AKA The Nomenklatura.