Mr. Obama picked up his trusty pen and phone again before the Senate Republicans could finish working on a plan that would actually cut college costs. He signed an executive order – a fiat – to transfer student college debt to “millionaires”, “millionaires” who are looking more and more like the middle class.
The program expands the Pay-As-You-Earn (PAYE) repayment program, which caps payments at 10% of a borrower’s income and extends the repayment period to 20 years (at which time it will be forgiven and taxpayers will assume the debt), to as many as 5 million borrowers.
Socialist Elizabeth Warren has a worse plan coming up to erase tax loopholes which will hurt millionaires and anyone else who uses them.
Mr. Obama has no idea how to pay for it. Oh, what’s money to him, after all.
Secretary of Education Arne Duncan told reporters at the White House that the administration doesn’t currently know how much the expanded payment cap will cost. “We’ll figure that out on the back end.”
Neither plan does anything about erasing the $1 trillion in college debt. More importantly, it does nothing about the rising costs and it actually helps facilitate them. Colleges will be encouraged to raise rates.
This does nothing to help college students find jobs. Mr. Obama’s economy has seen to that.
The entire plan doesn’t even go into effect for 18 months, so why announce it now? Could it be to get his many scandals off the front pages and out of the news cycle?
Over the past 30 years, average tuition at a public four-year college has more than tripled, the White House said, while family income has largely remained stagnant. An analysis by the Federal Reserve Bank of New York found that recent college graduates in the United States face a more challenging job market, which has left them overqualified and underemployed.