“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.”
Those were the words of Dick Morris, former aide to Bill Clinton, writing just three days ago, in The Hill.
He also said:
“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.”
This explains why all college student loans were recently federalized – to subsidize President Obama’s massive Obamacare package. Yet, even with these subsidies, Obacare still cannot be fully funded or maintained.
Morris went on to share a breakdown of what happens after a college graduate or a parent of a recent grad strokes a check to the government to pay for student loans:
“The federal government borrows the funds for the student loan program at 2.8 percent and then lends it to the students at 6.8 percent, a markup of 4 percent…[and] 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.”
Check out Dick Morris’ column to learn more about how the Obama Administration is using the hard earned money of poor college students and struggling parents to fund the President’s personal pet project that is Obamacare and keeping checking Liberty News for updates on this developing situation.