In an effort to draw younger voters to the polls in 2020, Democrat presidential candidates are promising to fight to ensure taxpayers will be on the hook for funding college education for all. Many of them are taking it a step further, advocating for taxpayers to also pay off any existing student loan debt. It’s strange, however, that none of the Democrat candidates running for president are talking about how the interest from the student loans is being spent, like subsidizing the Obamacare debacle for instance…
In 2013, The Hill reported that according to the Congressional Budget Office, $8.7 billion of the money collected in student loan interest payments actually goes to pay for ObamaCare. The CBO estimates that the interest rate on these loans could be reduced from 6.8 percent to only 5.3 percent were the funds not used to subsidize the healthcare reform law and other federal programs.
The profits from student loans are divided as follows: $8.7 billion goes to pay for ObamaCare; $10.3 billion goes to pay down the federal debt, and $36 billion goes to Pell Scholarship grants.
The 16 million American students who now have student loans are paying for ObamaCare out of their meager incomes just at the point when they graduate from college and need funds to start their lives, buy their first homes and begin a family.
Politically, how did the Republicans miss this issue in the last election? It is well to speak of fines that will be imposed on young people who don’t buy health insurance, but these penalties are in the future and still seem abstract to people in their teens and twenties. But student loan payments are a daily present reality, standing in the way of the rest of their lives. They, alone among forms of debt, are not dischargeable in bankruptcy and stain their credit reports forever if they are not paid.
For the administration to raid their wallets at this vulnerable time in their lives shows a level of arrogance and unconcern that is truly outrageous and stunning. That 2012 Republican presidential nominee Mitt Romney and his vice presidential pick Rep. Paul Ryan (R-Wis.) did not jump on this issue is beyond belief.
The nexus between the student loan program and ObamaCare is purely opportunistic. As the Affordable Care Act was passing through Congress, its wheels greased by the wholly fraudulent assertion that it didn’t need 60 votes to pass the Senate, the administration decided to put in a provision eliminating the private student loan industry, fully federalizing the program. What was not widely understood at the time was that it hoped to raid the funds paid by students to provide money for the bottomless pit known as ObamaCare.
Undoubtedly, few students know of this rip-off. If they did, they would curse Obama with each stroke of the pen they use to pay off the staggering obligations of student debt. The entire policy of student loans assures a kind of indentured servitude for our college graduates, and to piggyback on this burden the costs of ObamaCare is quite extraordinary.
In other words, Democrats would like Americans to support their taxpayer-funded scheme for votes, to pay off another massive taxpayer-funded scheme.
What do you think about the Democrat candidates promise to use your taxpayer dollars to pay off student loan debt? Share your thoughts with us in the comment section below.