Tuesday, March 30, 2010

Student Loan Industry Nationalization Tacked onto Health Bill

Did you know that? I didn't, although I reported on the student loan nationalization in my past blog posts.

Starting July 1st, anyone who wants federal student loans will have to deal directly with the federal government. (Good luck with that.) It is of course touted as reducing deficit and wasteful subsidies. (Here I thought deficit and wasteful subsidies are two hallmarks of the government.)

Goodies buried in this government takeover includes:

"New borrowers who assume loans after July 1, 2014, will be able to cap their student loan repayments at 10 percent of their discretionary income and, if they keep up with their payments over time, will have the balance forgiven after 20 years."

But wait! There's more. If the borrowers find employment in the public sectors, the balance will be forgiven after only 10 years!

And of course there's much more for institutions that cater to "minorities" - $2.55 billion more.

You can read all about it in the White House statement. If you are brave, you can dig into the health care bill itself (H.R.3590). (Good luck.)

It looks to me like this is another job bill - take away the jobs from private industry and shift them to the government. The government only takes away, but gives you an illusion that it creates.

So, Americans who will be forced to buy health insurance and to pay added taxes for medical products and services with the threat of fine and jail time will also be paying for the student loans that will be forgiven by the government.

Do you wonder what else is buried in that monstrosity of the health care insurance "reform" bill? If you don't, you should.


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