Obama has campaigned and fund raised across the country at the expense of taxpayers so it is no surprise that he is committing tax payer money in an attempt to buy votes. First, he announced a financial benefit for those who borrowed more money than they could afford and are now stuck with a home that is worth less than they paid for it. How many millions will that cost tax payers?
Next, in an effort to woo the youth vote, he proposes extra benefits in the student loan program. Already liberalized, the program now would reduce to l0 per cent of earnings that would be required for the student to pay annually, and after 20 years the loan would be forgiven. It is possible under this plan for a student to borrow $200,000 and pay back only l0 per cent of that with taxpayers being stuck with the remainder.
Many students borrow only the minimum they need and make every effort to repay the loan after graduation. Many people are familiar with so-called students borrowing an excessive amount, living it up in college, and never graduating and never intending to re-pay the loan. This program is ripe for changes, but not like Obama is planning.
Next, in an effort to woo the youth vote, he proposes extra benefits in the student loan program. Already liberalized, the program now would reduce to l0 per cent of earnings that would be required for the student to pay annually, and after 20 years the loan would be forgiven. It is possible under this plan for a student to borrow $200,000 and pay back only l0 per cent of that with taxpayers being stuck with the remainder.
Many students borrow only the minimum they need and make every effort to repay the loan after graduation. Many people are familiar with so-called students borrowing an excessive amount, living it up in college, and never graduating and never intending to re-pay the loan. This program is ripe for changes, but not like Obama is planning.
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