Obamacare and student loans
Given the title of this post you are, no doubt, wondering how these two concepts could possibly be linked. But, they are.
To jam Obamacare down our throats, the House must first pass the Senate bill, and, simultaneously pass what I call the “fix it” bill. The “fix it” bill will include the things that the House doesn’t like about the Senate bill…such as, not enough subsidies for folks to offset the cost of their insurance, and, less tax dollars from taxing “cadillac” (aka, union) insurance plans.
The plan is to have the “fix it bill” pass through the Senate under the reconciliation process under which only 51 votes are necessary for passage, thus cutting off a filibuster that could stall the bill.
Here’s the problem. With the House spending more money on subsidies, and, collecting less money in taxes from union insurance plans, the claimed cost of Obamacare will necessarily rise…by a lot.
What to do?
Include the government take over of student loans in the “fix it” bill being drafted by the House. According to Obama, this take over will save $67 billion. Which, surprise, surprise, will offset the increased costs of Obamacare under the House “fix it” bill.
Problem solved. Not only does Obamacare become “deficit neutral”, but the government take over of the student loan program, which would never have passed the Senate under normal rules, is now accomplished
As the theme song from the television series “Monk” says, “I could be wrong now, but, I don’t think so”.
Is there any other cogent reason for linking Obamacare to student loans?
Actually there is a connection. In the House bill there was a provision for increasing the number of medical providers by offering to "forgive" student loans, if the individuals will go into the medical areas they want them to. Mainly to increase primary care physicans and nurses, I believe. Don't know if it was in the Senate bill.
And just coincidentally allows them to payoff their friends in academia.