Sometimes there’s so much out there it’s hard to keep up.
For instance, although I’d heard of the Pay As You Earn program, the details had previously passed under my radar screen. But my oh my, the set-up’s clever:
But the immediate taxpayer S.O.S. concerns Mr. Obama’s Pay As You Earn program. We’ve warned for years about the risks of this program as Mr. Obama has worked to expand the number of eligible borrowers and sweeten its terms.
Pay As You Earn allows students under certain circumstances to borrow an unlimited amount and then cap monthly payments at 10% of their discretionary income. If they choose productive work in the private economy, the loans are forgiven after 20 years. But if they choose to work in government or for a nonprofit, Uncle Sugar forgives their loans after 10 years.
For aspiring community organizers who go to college and then grad school before moving into a job that the government defines as public service, the forgiven debt can be $150,000 or more, courtesy of the taxpayer. And unlike with some other federal programs, when the government forgives the debt of one of the exalted class of nonprofit or government workers, the do-gooder doesn’t have to report it as income to the IRS. Who wouldn’t want to pick up $150,000 tax-free?
What’s so clever about it for Obama and the Democrats? It’s probably pretty obvious, but I’ll state it anyway: it simultaneously fills the coffers of the left’s cadre of propagandists known as the universities and assures a ready supply of recruits for the left’s foot soldiers out in the working world, those employed by government and nonprofits.
And the taxpayer finances what basically amounts to a forced contribution to the Democratic Party. Sweet.