NPR has details on President Obama's plan for student loans:
He said he'll use his executive power to expand a program called Pay As You Earn, which limits borrowers' monthly debt payments to 10 percent of their discretionary income. Under the program, loans don't just get less expensive; they can actually disappear. The balance of a loan is forgiven after 20 years — 10 years if the borrower works in public service (for government or a nonprofit).
In other words, if you work in the private sector and save for your own children's college education or paid for your own, you now get to pay not only for your own education or for your children's, but also for those who work for government or for "a nonprofit." These loans don't actually "disappear." The money was paid out to the colleges so that they could pay high salaries to administrators and build fancy student centers for students (in addition to, it must be said, supporting some valuable teaching and research). It's just another way that Mr. Obama is dividing Americans into groups, some favored (nonprofit and government employees), others soaked (for-profit employees, the "rich.") When people figure this out, they will be just as angry as those at the beginning of the Tea Party who objected to bailing out homeowners who didn't pay their mortgages.
