Tonawanda News


November 27, 2012

Wasting money on student loans


Tonawanda News — Another example shown in the advertising was that of a doctor with an income of $120,000/year with an outstanding student debt of $100,000. His payment would be $7,728 per year and he’d be paid off by Year 13. Now, suppose a classmate of his accrued the same debt and did not pursue the medical career because he found he didn’t like it (career changes are common among the impetuous young) or he was found to be negligent and lost his license. His income in another field might be $45,000 or less and he’d

pay the $235/month in the first scenario. After 20 years, he’s paid just $56,400 towards his loan and taxpayers have to eat the other $43,600. Some readers may say this is an extreme case, but is it? The access to easy money, low repayments, and forgiveness will cause many people to choose expensive private universities over more-affordable state-run schools, so you will see these numbers played out in volume.

The last scenario shown on the website was for a teacher with an income of $40,000, 2 kids, and debt of $15,000. Her payment would be a tiny $540 per year. It would take her 28 years to pay off her loan. If she were instead in the private sector under the same scenario, she would have 8 years of payments forgiven.

Instead, she’s in the public sector. And, this is where it gets really idiotic: Under the final version of PAYE, public sector employees are given special favor and their loans are forgiven after 10 years. So, if that teacher would have paid only $5,400 towards her loan who would pick up the remaining $9,600?

Why, you and me of course!

That ugly brand of classism – that makes public sector employees seem considerably more important than private sector workers (would the government want it any other way?) – shows the moral depravity of the Obama Administration, the same one that tries to prime the pump for class warfare between the “rich” and the “middle class.” Obama and friends seem to forget that were it not for the

private sector, the public sector would never exist…government has to get its money from somewhere.

After all, somebody has to pay for everyone’s college bills.

Gasport resident Bob Confer also writes for the New American magazine at Follow him on Twitter @bobconfer

Gasport resident Bob Confer also writes for the New American magazine at Follow him on Twitter @bobconfer

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