President Signs Reconciliation: Touts $68B Student Loan Take-Over
Will Benefit Students
Published March 30, 2010, 11:24 am, CST
by Diane W. Collins
dcollins@marketingweb.com
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President Obama Touts Benefits of Student Loan Take-over Signs Reconciliation Act of 2010 |
President Obama has just signed the Reconciliation Act of 2010 that will impact health care reform and take over the student loan industry. As states governors review the extent of additional costs they will incur from health care reform in Medicare and Medicaid, they cut funding to universities and colleges. Corporations announce billions in write downs and evaluate "paying the fine" for not covering currently insured employees... transferring them to the government plan. So much for "Like it, Keep it. So much for "helping" students.
Universities fear tuition will go up. States have to find the money somewhere to pay for the Health Care Reform enacted into law. As we have reported, this has been evidenced by California's 34% increase in the University of California system's tuition... California is the precursor to all effects Liberal Left. So, our question is this. As President Obama stands in front of Northern Virginia Community College students to sign his bill he says taking over the Student Loan industry will save the government $68B. How much do the students get? He's careful to say this money "can be used" to support education and goes on to say "portions" will be used to upgrade community colleges without saying exactly how much. President Obama says they will reinvest "part" in Pell Grants to help as college costs "skyrocket." President Obama said 800,000 new Pell Grants would be added to the program at approximately $6,000 each. (By our math that's $4.8B...) He said with the typical student loan ranging at $20,000 - $23,000, they will restore "fairness" to how student loans are repaid... but the real benefit of not paying more than 10% of your income does not kick in until 2014 with loan forgiveness requiring 10 years of community service.
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Sen. Lamar Alexander (R-TN) offered Amendment to give students the whole $68B from Student Loan Take-over. Democrats voted it down. |
Yet, in the Senate debate prior to passing Reconciliation, Sen. Lamar Alexander (R-TN) offered an amendment to the bill that would have returned the entire $68B to higher education. Sen. Alexander also pointed out the President and his administration will be using the majority of the money saved by the Student Loan Take-Over to help pay for the Health Care Reform legislation. In addition, Sen. Alexander stated the Student Loan Take-Over would cost 31,000 jobs in that industry. (It should be noted that Sen. Alexander is a past President of the University of Tennessee and has also served as the Governor of that state.) So, it looks like Health Care Reform legislation is causing increased costs to states, reducing the money available from state budgets going to colleges and universities and raising the costs of tuition, while giving students a token of support in return. Reality bites. We'll include more video to support our remarks shortly. Hang in.