There’s nothing remotely “forgiving” in President Obama’s student loan bailout, which posted an almost $22 billion shortfall last year.
Neatly buried in Mr. Obama’s 2016 budget, the loss is “the largest ever recorded for any government credit program,” Politico reports. And it’s only going to get worse.
Under Obama’s blind beneficence to make higher education “more affordable,” loan payments are limited to 10 percent of the borrower’s income. Outstanding debt is forgiven after 20 years — or 10 years if the borrower lands work in public service.
And recently Obama has directed federal agencies to “overhaul” the way Americans repay their student loan debts. The Student Aid Bill of Rights calls for a website, by July 2016, to give borrowers an avenue to file complaints about federal student lenders and collection agencies.
Meanwhile, colleges have even less incentive to contain tuition hikes as taxpayers will end up picking up the tab, notes the American Enterprise Institute.
And how convenient, too, that the $22 billion can simply be added to the deficit without approval from Congress.
Rather than realistically addressing an estimated $1.3 trillion in student loan debt, Obama is determined to dig an even deeper hole. That “hissing” sound you hear is air going into a balloon, which Congress must deflate before this student-loan lunacy goes “Boom!”