November 6, 2013
The rich ruleth over the poor, and the borrower is servant to the lender. – Proverbs 22:7 KJV
Student Loans Explode Under Obama
CNSNews.com reports this morning how, under this sitting president, student loans have increased a staggering 463% in only five years.
Before Obama, students borrowed funds through private lenders. Now, the Direct Student Loan Program is a direct connection between student borrowers and the federal government. The executive branch of government now has direct and total control of student loans.
CNBC.com News reported in September,
There is over $1 trillion in outstanding student loans, making it the second largest source of household debt after mortgages. Just 10 years ago, student loans stood at $240 billion. About $150 billion of the total is comprised of private student loans made by banks and other financial institutions, according to a report issued by the Consumer Finance Protection Bureau last year.
Student Loans Fund ObamaCare
The real story is raw tyranny. “Oh, come on, now”, you exclaim with indignation, “how in the world can you equate student loans with tyranny?” Thank you for asking. I explain.
The Direct Student Loan program is now part of the ObamaCare nexus.
According to The Hill, citing data from the CBO:
According to the Congressional Budget Office, $8.7 billion of the money collected in student loan interest payments actually goes to pay for ObamaCare. The CBO estimates that the interest rate on these loans could be reduced from 6.8 percent to only 5.3 percent were the funds not used to subsidize the healthcare reform law and other federal programs.
The profits from student loans are divided as follows: $8.7 billion goes to pay for ObamaCare; $10.3 billion goes to pay down the federal debt; and $36 billion goes to Pell Scholarship grants.
The 16 million American students who now have student loans are paying for ObamaCare out of their meager incomes just at the point when they graduate from college and need funds to start their lives, buy their first homes and begin a family.
Few lawmakers actually recognize how Americans under this radical president slowly subjugate citizens into a form of legal slavery.
Think about it: the more students that take out loans, the more money Obama has to develop his grand plan put every life under the benevolent thumb of federal government.
- 49,700,000 Americans live below the official poverty line [source]
- Actual jobless rate is at 23%. This compares to the worst year of the Great Depression when it was as high as 25%.
- U.S. home ownership is at an 18-year low
- Participation in the job market is low and getting lower for young adults
ObamaCare heavily depends on contributions from working young people, but they are not working. ObamaCare heavily depends on earned interest from student loan repayments, but student loans are in a trillion-dollar ‘bubble’ that will inevitably burst as waves of graduates depart college for a job market that isn’t there. How will they service those enormous student loan debts? They won’t.
When the student loan bubble bursts, ObamaCare will collapse. Yes, other factors can cause ObamaCare to collapse of its own weight, but allowing such a thing to happen will jeopardize tens of millions of American lives, most certainly our senior citizens who depend on Medicare.
Sarah Palin prophetically warned of “death panels”. Liberal media and Democrat pundits belittled her when she uttered that warning. Now, it’s becoming reality and they aren’t laughing any longer.
When all medical care is fully under control of federal government and millions more depend on monthly welfare checks, food stamps and ObamaPhones, tyranny will be complete. We will all be as much slaves of the state as were the people of Stalinist Russian.
Finally, student borrowers will become servants to the lender, the U.S. Government. I can imagine what scenarios unfold then, and I think of the WPA camps.
Communicate with your two U.S. Senators and your U.S. Representative. Tell them to do all they can to defund, disable, destroy, repeal or emasculate the Affordable Care Act, ObamaCare, before it utterly destroys the U.S. economy.