A method to his madness, How Obama will draft his army, $103 billion in student loans at a time.
The pieces of the puzzle are being revealed.
First, nationalize student loans, (to the tune of $103 Billion this year) put a hurting on private sector, eliminate choice, and those left with well paid lobbyists like Sallie Mae, give them servicing contracts. A bill passed the house already on a party line vote.
Obama to Nationalize Student Lending with Pending Budget Bill
Wednesday, January 20, 2010
By Matt Cover, Staff Writer(CNSNews.com) – A bill currently before the Senate would empower the Obama administration to nationalize the student lending industry, eliminating the federally subsidized private loans millions of university students rely on to finance their educations.
We all know subsidizing something generally ends up with higher costs, evidenced by college tuition costs rising faster than general inflation. Similar to making low cost mortgage money available to nearly everyone inflated home prices. The great thing here for Obama is he funnels billions into the core leftist ideologues courtesy of the taxpayer via the student in hock. The money funneled into higher education is going less and less to education and more and more into administration.
He will be out pitching the program saying it will “save” (is that the same kind of save as in create or “save” jobs?) $85 billion in costs but cutting out the middle man. Huh? You mean there will be no cost in servicing these loans? What he didn’t tell you is that the $85billion figure doesn’t include any defaults. The CBO reduced that to a $47billion savings w/ historical default rates factored in. Whoops, mere oversight? With the crap economy Obama has accelerated, we are sure to have far more defaults in students paying back loans. Generally you need a job to pay back a loan.
In addition to the poor economy, more defaults will be the norm with the government at the helm there will be no incentive to collect, nor any qualifying upfront. They will be paying service fees to firms for action, a few phone calls here and there, not collection. Again, no built in accountability except a rising tab billed to the taxpayer. Billions more wasted with no progress.
Second, offer national service programs to allow students to “work” off some of their loan by working for The One. Obama will tell you students will still have a choice, pay ever artificially inflated subsidized college debts in full, or join his army. That what he calls free choice.
updated 4:11 p.m. CT, Tues., April 21, 2009
WASHINGTON – Calling on Americans to volunteer, President Barack Obama signed a $5.7 billion national service bill Tuesday that triples the size of the AmeriCorps service program over the next eight years and expands ways for students to earn money for college.
“We need your service, right now, in this moment in history. … I’m asking you to stand up and play your part,” said Obama, a former community organizer in Chicago. “I’m asking you to help change history’s course.”
I kinda like the idea of volunteering, not forced community service. So in review, the plan is to drive up college tuition costs for the student by subsidizing, forcing them to take out loans and be in hock to the government, be the only loan provider to the student while funneling the subsidized funds to your educational elite comrades(a nice re-election money loop funded by taxpayer) Then the student has no choice but to serve in your community service army. So how does this “save” money again?