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Attention taxpayers: not only will you see an increase this year in what you owe to the federal government, but you will now be subsidizing President Obama’s student loan forgiveness plan.
This week, Obama delivered his $4-trillion budget proposal for fiscal year 2016 to Congress. Deep within the pages of this expensive budget one can find the $21.8 billion deficit from Obama’s new student loan repayment program. As the Obama administration has reduced student loan payments for some to 10 percent of income and loan forgiveness after twenty years, we now see our federal deficit increase by a whopping five percent. No need to fret about the shortfall though — because it will just be “tacked” on to the federal deficit.
It is important to realize that Obama put in place “reforms” for student loan borrowers that reduced their loan payments. As a result, taxpayers will now foot the bill. This information comes on the heels of Obama’s proposal for “free” community college.
In 2014, the average graduating student debt reached a record-breaking $33,000. Student debt has risen at an average of six percent per year since 2008, and today, 70 percent of college seniors graduate with student loan debt. In addition, the job market still hasn’t recovered, leaving many recent graduates with little or no income to pay back their loans.
If this administration truly wants to help today’s college graduates, they should begin by decreasing youth unemployment through job creation. If young people to have access to job opportunities after graduation, they would be able to begin paying back their student loans. But, with little to no job opportunities, paying back loans becomes near impossible.
As the federal government offers new repayment and forgiveness programs, the less responsibility borrowers feel to pay back their loans. When taking and repaying loans becomes “easy,” there is almost no thought given to the financial implications of borrowing money. With the rising cost of education, these new government programs make a college education more accessible — but at a huge cost to taxpayers.
The only way that the economic situation will improve is if our nation’s leaders are willing to respond to the real fiscal issues of the day instead of putting temporary band-aids on them. America is in desperate need of real solutions and not more government bailouts.
More government programs and wasteful government spending are only hurting today’s youth, not helping them. Our young people are struggling to be financially independent and are in need of a hand up, not a handout. Young people are aware of the severe hardships they face and are disappointed with our nation’s policymakers, who continue to place financial burdens on their backs.
Obama’s presidency has been one of vast expansion of government programs, adding a staggering $7 trillion to our nation’s $18 trillion debt. Young people are those who are most affected by the rising national debt and reckless Washington spending, since their individual share of the national debt is $58,437.
This take-and-spend government is out of control and operates under the guise of “helping” people. Interestingly enough, the administration relies upon taxpayers to bail out these lofty and idealistic programs. The Obama administration’s reckless spending should be of great concern for America’s youth, because they will be picking up the tab.
