President Obama’s first State of the Union Address is a gift that keeps on giving. Take for example this gem from the speech on government-funded student loans:
And let’s tell another 1 million students that, when they graduate, they will be required to pay only 10 percent of their income on student loans, and all of their debt will be forgiven after 20 years ….
He’s proposing that taxpayers pay tuition for college students even if they don’t pay the money back. Worst off, he claims this would actually save money:
… will finally end the unwarranted taxpayer subsidies that go to banks for student loans.
The government will take over student loan programs and, over time, forgive students’ debts. What incentive would individuals have to pay off their debt? How this saves money is seemingly left to the imagination.
And then comes the real kicker:
… all of their debt will be … forgiven after 10 years if they choose a career in public service, because in the United States of America, no one should go broke because they chose to go to college.
So, we now have the government using taxpayer money to not only subsidize college tuition for individuals but also nudge them into “public service” (read: government employment). This would only further the notion in students’ minds that they are entitled to subsidized post-secondary education from taxpayers. And if students really want a good subsidy, they can just work for the government and live off of taxpayers for the rest of their lives.
I guess this is one of Obama’s ways of creating jobs?