Obamacare was paid for on the backs of students.
You may remember that Obamacare staggered over the legislative finish line in 2010 with $19 billion in profits from changes to the student loan program. The changes included nationalizing federal student lending and setting loan interest rates high enough to generate profits to cover the healthcare costs.
Monday, President Barack Obama and the Democratic-led Senate again put their political and legislative priorities ahead of students and allowed their loan interest rates to double.
This student loan episode cements the Obama administration’s continuing pattern of economically exploiting younger voters. Because of the Obamacare-created Federal Direct Lending Program, a 2009 freshman who qualified for federal subsidies and borrowed the maximum Stafford Loan every year will graduate with a financial penalty of over $400 more in debt than if markets had set interest rates. A more affluent freshman, who did not qualify for subsidies, will carry an additional $1,400 in debt. Meanwhile, a graduate student, who entered a three-year program in 2009, will be facing nearly $3,400 more in debt as he or she seeks to launch a career.
In passing Obamacare, Washington took its eye off the economic recovery. As a result, the unemployment rate for workers aged 20 to 24 remains stubbornly above 13 percent; the rate for those ages 25 to 34 is more than 7 percent, and the duration of unemployment remains at levels not seen since the Great Depression.