GOP candidates blast Obama student loan plan

[NNN0LHI]

http://www.miamiherald.com/2011/10/27/2475477/gop-candidates-blast-obama-student.html

Posted on Thursday, 10.27.11

By SARAH BUTRYMOWICZ
The Hechinger Report

NEW YORK -- Republican presidential candidates on Thursday night criticized the Obama administration's newly announced plan to lower student loan repayments, saying it would simply shift the burden of costs from students to taxpayers.

The plan would limit loan repayments to the equivalent of no more than 10 percent of students' income for 20 years, with the rest of the debt forgiven, instead of the current maximum of 15 percent for 25 years. The president has said he will use his executive authority to make that change, rather than wait for Congress to act.

Rep. Michele Bachmann of Minnesota called the move an "abuse of power," and she and former House Speaker Newt Gingrich said that students would have to repay the forgiven loans as taxpayers.

"That's a Ponzi scheme by even Gov. (Rick) Perry's standards," Gingrich said.

[JuniperLea]

1. I think I like it more now...

Jubilee!

[VWolf]

2. LOL @ "Ponzi scheme"

Seems every repub knee-jerk reaction includes the phrase "Ponzi scheme" these days.
How the hell are student loans remotely related to Ponzi schemes???

:rofl:

[PDJane]

3. If it's not that, it's socialism.......

[TwilightGardener]

4. Newt wants to eliminate student loans, thinks kids should work to cover tuition.

That might work if one were attending an inexpensive community college, had no other financial obligations, and was able to work lots of unusual hours to cobble together full-time pay around a full-time school schedule.

[dtexdem]

5. Keep it up, GOP! You're not going to be able to keep enough students from voting ...

for you to recover from your silly antics over this.

[MH1]

6. Potential unintended consequences?

I like Obama's plan in theory. Except maybe the 20 year limit with remainder 'forgiven'. I'm afraid this will result in lower willingness to lend from private lenders. If this only applies to government-underwritten loans - I admit some lack of knowledge of the student loan process, although I still have about 18 years left on mine, ha ha - then it will start to be a drain (though probably minor) on the Treasury, beginning 20 years from now.

I think a better approach would require ultimate payoff, even if it takes a long time; and maybe ratcheting the limit over time. I mean c'mon, once you get a job and start racking up experience, it should be easier to keep a job. The people who are screwed today are those who either a) don't have college education OR b) have lost their job at an age where it's hard to get rehired, due to rampant age discrimination. Young kids coming out of college have it tough getting started, but once started, they should be ok. (Maybe I'm out of touch though. All I know is I see definite preferences given to tossing out older workers and bringing in younger, on whatever pretext the company can find.)

But anyway, my biggest concern is that private lenders will shut off the tap if they think the loans won't be repaid. That will make it harder for kids to get student loans in the first place, right?

[backscatter712]

7. What? Taxpayers funding education instead of debt-slavery?

We can't have that! We'd have an educated populace, and they'd engage in critical thinking, and then they'd realize how badly they're getting fucked and take to the streets!

[craticdemo]

8. And Bachmann is a joke even by gop standards.

same with the newt