Barack Obama, Democrats, Education, Issues, The White House

Jobs needed, not student loan forgiveness

11

President Barack Obama has decided to leave a lasting impression before he exists office. Obama has put in place a student debt forgiveness program which only helps few while costing all excessively. Now as costs of tuition continue to soar, the Obama legacy on higher education reform will clearly be one of economic distress and government overreach.

Image Credit: DonkeyHotey CC by 2.0

Image Credit: DonkeyHotey CC by 2.0

Thanks to Obama, the federal government is on track to forgive at least $108 billion in student loan debt in the coming years according to the Government Accountability Office. Which, is what happens when the economy does not produce jobs for college graduates because it has been slowing down for 16 years, not growing above 4 percent since 2000. Graduates go for loan forgiveness, because the jobs that there are do not pay for the loans.

According to the Wall Street Journal’s Josh Mitchell, the most generous repayment plans are capped at 10 percent of the borrower’s discretionary income. He continues to note that, “Congress approved the plans in the 1990s and 2000s, and President Barack Obama has used executive actions to extend the most-generous terms to millions of borrowers.”

This has caused the number of students borrowing to skyrocket over the last three years, resulting in a collective debt of $355 billion. The Government Accountability Office (GAO) estimates $137 billion will not be repaid.

The GAO also criticized the Department of Education’s accounting practices, noting that its costs could be off by billions of dollars. These figures also do not include future loans or outstanding interest on current loans which will accrue over time.

However, the financial burden which taxpayers will ensue will only get worse with the further implementation of this program. As explained in a Wall Street Journal editorial in July 2015, each year which had growth in federal student aid for higher education, also saw a rise in tuition prices. This is a surprisingly understandable trend.

The more the federal government has been willing to give, the more schools have been willing to charge.

Consistently since 1987 every time the federal government has raised financial assistance, Universities have raised costs. Not only do colleges increase costs knowing financial aid will act as a cushion, but with the increase in students entering the University there is a necessity for more classrooms and resources, driving up costs significantly.

Finally, the Obama plan does not even provide adequate relief for all those in need, for private sector workers their forgiven amount would be taxed as ordinary income. However, for government workers and those who work for non-profits forgiven debt is listed as tax free income.

Either everyone’s loan forgiveness should tax-free, or nobody’s should be. Government employees and non-profit workers are nothing special, no offense.

The idea of debt-forgiveness is not entirely partisan. Even President-elect Donald Trump has proposed settling payments at 12.5 percent of income and forgiving balances after 15 years. It is Obama’s expansion of current plans and new taxation codes which makes the plan economically unsustainable.

For young Americans with college degrees but who can now not find jobs in the slow-growth economy, they cannot afford to pay off their loans. To them, a student in debt a relief plan sounds amazing. But for a country in debt, this agenda is not the greatest good for the American people. The real solution is not student loan forgiveness, but for the economy to get moving again with robust growth and creating jobs. The government can help that along by reducing the cost of doing business here. And stop telling every American they need a college education when not every job requires one. Otherwise, as universities raise prices the government will be forced to forgive more and more, eventually it is possible higher education will take home mortgages place as highest household liability. Then, even the people who need to go to school for their chosen vocation won’t be able to afford it.

This is a guest post by Natalia Castro contributing editor at Americans for Limited Government.
  • RLTMLT

    Bailing out Marxist institutions of higher learning, what else should we have expected from a Liberal President ?
    Spending other people’s money is what led to the Obama Administration’s doubling of the debt over the past 8 years to a whopping 21 Trillion Dollars !
    It’s going to be damn near impossible to reverse the effects of NAFTA on this country over the past 20+ years, Private corporations have no incentive to commit financial suicide by returning their manufacturing jobs to a debt burdened country where most people think we can simply return to the previous economic status with no questions asked !
    Trump has the right idea, rather than continuing our pointless, dangerous, and expensive attacks on those foreign countries that have rejected their previous colonialist agendas and pursued building profitable international trading relationships with their neighbors. We can least afford yet another Cold War and the various members of this new age of international cooperation will likely reject our efforts to return the world to Cold War status !

    • Robert

      RLTMLT
      The United States is the only Industrialized country in the world where college is not free to those that want it The US spends more % wise than any country on education and yet we are number 14 in the world when it comes to Educational levels., In most of the world most Americans are considered illiterate for general knowledge, nearly all schools in the rest of the world where education is not controlled by the church, dual language is mandatory and college is free, we lost over 100,000 bright students to Europe last year to attend free college most in Germany.and you might consider about .25% minimum will not be back so some other country has our bright people.
      People can fight Socialism all they want but it is the only way the not rich will be able to compete in the world. The USA is so biased against the poor it is unimaginable, even if you can get a grant to go to college you still have to have place to live and food to eat so those whose parents can afford to sent their children to college with spending money those children have afar better chance of learning than those that have to work to pay for their college.
      We can not exist as an island we are all ready global in every aspect except in some peoples minds, look at Trump 90% of his corporation is in other parts of the world including his clothing business, yet he yells about keeping jobs in this country.
      HAVE A GOOD DAY

      • RLTMLT

        I can’t disagree with you Robert !

        As you say, we can no longer exist as an island in a Global World !

        Former Reagan Administration cabinet member Paul Craig Robert’s web site was put on a list of so-called Fake News websites that have been accused of spreading Communist propaganda. In response, Putin has actually offered Roberts a Russian Travel Visa. As Roberts has said, this continuing issue has essentially become a joke among Russians and those Western Web Sites that are included on this list.

        Below is a link to an RT interview with Roberts where he puts forth his thoughts on the various motives that drive this issue. He agrees with you and me that this country can no longer afford to pursue permanent wars of aggression in an effort to establish an international military empire.

        https://www.rt.com/op-edge/368700-dear-president-putin-russian-passport/

        • Robert

          RLTMLT
          We have two choices to keep on being the military for those countries or let Russia take over, and who ever provides Military, is who has their attention and support. Just like in Syria because we did not take a stronger role in what was happening Russia has her foot firmly in the door, it was only with Iran now Russia has three countries at their side in the Middle East.
          The anti Muslim BS that is being stirred in this Country is not helping the US keep their foot in the door in the Middle East in fact it is making it harder for the US to deal with Muslim countries because now the General Population who used to like Americans think we hate them just because they are Muslim.
          My friend in Pakistan wrote me that she and her husband never knew American’s felt this way about them.
          I wrote back and assured her it was just a few loud mouths that were trying to stir up trouble.
          I watched the video and it is rather unnerving.

          • RLTMLT

            I know by now that I can’t change your distrust of Russia, despite the fact that they have failed to take any extremely provocative moves during the Syrian affair while American interests in Ukraine attempted to place nuclear missile launchers on Russia’s border. No threats of war from Putin, only protests related to this provocative and extremely dangerous action ! I can only hope that Trump restrains any future efforts by the Neocon faction to poke Putin in the eye, the fate of the entire planet is at stake !

          • Robert

            RLTMLT
            It is the story of behavior, with anything fish, animal humans, there can only be one leader, There has to be challenges continually to see who is going to be number 1, it will eventually come down to the line sometime in the future, either one of the countries will get to weak and the other will take it over or there will be war. It is the story of time, and after that there will be another challenge to the winner of that contest, it just goes on with the powerful even with business trying to be the biggest so they can control other businesses. At one time it was steel, then the railroad and now it is down to oil and Green energy fighting it out, it is called EVOLUTION. and it never stops, if you get weak you go under. Look at the power houses in the world, back through the ages, at one time the sun never set on English Countries,, now England has very few holdings throughout the world.
            HAVE A GOOD DAY

          • RLTMLT

            One would hope that things would change but unfortunately, the conditions you state are firmly entrenched in most cultures on this planet. I don’t consider myself naïve, too many years confronting the realities of life on this ball. But one can hope that at some point in time, the cynics would be outnumbered by those who reject the cause of narrow personal economic interest as they seek a lasting relationship among all groups on this planet. Something none of the various religious entities have been unable to accomplish over many centuries !
            The British Empire’s demise should have been a lesson to American leaders of what happens when you allow the ambitions of a few wealthy individuals to take control. The next ten to fifteen years could see this country experiencing Brittan’s current fate and worse ! The strategic location of our country, like that of Brittan, is no guarantee of ongoing success when the leadership remains dedicated to total foreign domination !
            HAVE A GOOD WEEKEND !

          • Robert

            RLTMLT
            I do so were right you were right, I really think Greed is part of the makeup of everything, just like, some would call it protectionism, a male deer having a herd of, females, more than he can really service but he will fight to the death to keep them.
            It is in every species I have read about. The need to be in charge or be a leader, to eliminate our competition.
            You would think that being humans we would not be so primitive in our outlook but here we are, Christians who are supposed to be fair and open minded about everything right now spewing hate toward the Muslims, who have lived in this country since before it was a country and done none any harm.
            I do lay a lot of it down to lack of education, but the leaders in these churches teach this hate, to preserve their own status.
            How is anyone supposed to make a sound decision when so much lies fermenting hate for others is allowed to persist in our society.
            We have freedom of speech, and in some ways it is controlled, but the latest BS about Muslims has caused a 125% rise in Muslim hate crimes in one year.
            A one Government world was decided at the end of WWII and nothing can stop it, it was always on the table the 5 main world leaders set down and drew it up and how it was to proceed, and it is almost right on course. The 5 permanent members of the UN will be the world Government and that is how it will be, but then they will be fighting to be the leader of the pack among them selves, because as the old saying goes there can be only one.
            HAVE A GOOD WEEKEND YOURSELF

          • RLTMLT

            After seventy years of uninterrupted progress, it’s obvious that we mere mortal bystanders will never be able to alter their course ! Though their apparent lack of concern over the availability of mega nuclear weapons in the hands of seven known countries introduces an additional element of concern, too many paranoid maniacs out there with their fingers on the nuclear trigger ! Yet there is one bright spot, we no longer have to be concerned with the possibility of a protracted conventional war. All life on this planet, except for the cockroaches and the politicians in their bunkers, gone in thirty minutes !

          • Robert

            RLTMLT
            Both major nuclear armed countries have so many deterrents built in that they know no one will win and there will be no place to live after it happens, the countries does not even rattle those swords any more. The only country I personally worry about using the nuclear is Israel, if things get very bad for them I am sure they would use it. In our multinational world there will be no place for religious hate, there will always be dislike for some reasons but there will not be whole religious order that hate other religious orders, they will all have to intertwine like it was supposed to be here in the US according to our Constitution, where it was written that the Government could not favor or support any religion that all religions could practice freely without interference from others.
            We have just elected a new President who wants to take the country back probably 30 years in individual freedoms and do away with the things that protect like the EPA, Social Security, and the new what is called Obama care, which gives everyone a right to have insurance at affordable cost no matter what their previous condition was.
            Now he ants to name as Secretary of Defense a .Military Man against what the Constitution says. The Federalist Papers do explain why they wanted a civilian in the post because Military people are to prone to act immediately when they should have waited, ev3en though waiting might not have been the thing to do but to err on the side of caution so as not to make a mistake. This Secretary of Defense nominee also want to set women in the military back about 10 years of hard fought gains, he is also a religious zealot and has pushes it in his career, he has been reprimanded verbally on 3 occasions for this.
            HAVE A GOOD DAY.

          • RLTMLT

            Can’t disagree with much of what you say. I supported Trump in the recent election with the hope that he wouldn’t allow the darker elements of the Republican Party to totally manipulate his Administration, as his organization prepares to take control of the Whitehouse it’s obvious that he’s increasingly just going along for the ride. This can be blamed on his total lack of experience in the political world and his failure to allow competent political advisors to direct his actions. Understandable for a free wheeling entrepreneur that has mostly relied on his gut instincts developed from years of experience. Only team players are allowed to survive in this office, those that have chosen to go their own way have either departed this office in disgrace or a body bag !
            HAVE A GOOD DAY!

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