With total student loan debt topping $1.2 trillion and not content with having nationalized the nation’s student loan industry, President Barack Obama wants to do more to bailout deadbeat borrowers that have taken out government-backed student loans.
President Obama calls it the “Student Aid Bill of Rights” – feel good plan to purportedly help students pay their student loan debts care of the U.S. taxpayer. Quoting the president:
“(My) Administration…will make college more affordable through increased Pell Grants and education tax credits, while improving transparency so that students and families have the information they need to select schools that provide the best value. Today, we are building on the Administration’s success helping students manage their debt and stay on track.”
The “Student Aid Bill of Rights…outlines a series of new actions that direct the Department of Education, Department of Treasury, Office of Management and Budget, Office of Science and Technology Policy and Domestic Policy Council, working with the Consumer Financial Protection Bureau and the Social Security Administration, to make paying for higher education an easier and fairer experience for millions of Americans.
Supporters say the “Bill of Rights” scheme will help students pay back their debt through lower payments and interest rate reductions.
Opponents fear it is the president’s way of teeing up “loan forgiveness” by Executive Order before he leaves office to relieve students (including those who did not graduate) of the need to pay back their government guaranteed debts.
Executive Orders notwithstanding, a section entitled “Forgiveness, Cancellation and Discharge” on the Department of Education website lists a range of options that students can use to stick taxpayers with the bill.
For example, loan forgiveness is available for those who go into teaching. Another forgives the debt for those who are partially disabled (undefined). Student loans may also be discharged in the event of bankruptcy – something that does not apply to federal income taxes.
President Obama ends his student loan missive with this advice.
“The Student Aid Bill of Rights builds on the efforts our Administration has been taking over the last several years to make college more affordable and continues to chip away at the burden of student debt – so no one should feel overwhelmed by their student loans.”
Forgiving, canceling or discharging student loan debt is a sure fire way to solve the student debt problem.
