Got student loans? Feds make an offer you can’t refuse

Worried about how to pay off that student debt? Head on over to the closest government agency, and you too can score loan forgiveness after ten years of “public service.” Does that sound too good to be true? Well, Paul Winfree tells us that politicians voted to make these dreams (or nightmares) a reality:

… While hashing out the bill that reconciled differences between the House and Senate versions of health reform, lawmakers tossed in another overhaul as well. They completely remade the student loan industry.

As a result, college students will pay more for their school loans … unless they go to work for the government.

How will they pay more? The legislation allows graduates whose monthly loan payments exceed 10 percent of their monthly income to extend their repayment period by 10 years or more beyond the norm. Sure, you can stretch out your payments across 20 years, but the cost will increase because of interest.

But that’s only if you’re a sap who insists on working for the private sector. If you go to the public sector, you can say that you’re just going to pay off your obligation over 20 years, and after 10 years, have the debt “forgiven.” (Why the scare quotes? Because when you don’t have someone paying back their taxpayer-funded debt, it means — SURPRISE! — that taxpayers hold the bag, in addition to the massive, unsustainable defined-benefit pension plans we highlight all the time.)

It’s highly unlikely that private employers will be able to pony up a compensation package more attractive than what the public service wife has even without this incredible student loan premium. Recent studies show that government compensation levels are 12- to 40 percent than those of the private sector.

Worse, it spreads a contagion called governmentitis — the desire to remain in a government job rather than contribute to the actual economy simply because the taxpayer-funded benefits are too sweet to pass up.

Beltway ConfidentialDepartment of Educationhigher educationUS

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

San Francisco Police Officer Nicholas Buckley, pictured here in 2014, is now working out of Bayview Station. <ins>(Department of Police Accountability records)</ins>
SF police return officer to patrol despite false testimony

A San Francisco police officer accused of fabricating a reason for arresting… Continue reading

Disability advocates protested outside the home of San Francisco Health Officer Tomas Aragon. (Courtesy Brooke Anderson)
Vaccine rollout plan for people with disabilities remains deeply flawed

On February 13, disability activists paid a visit to the house of… Continue reading

Mayor London Breed and Supervisor Shamann Walton announced that funding would be diverted from the police budget toward the black community in June 2020. (Kevin N. Hume/S.F. Examiner)
City directs $60 million toward Black community services and housing support

San Francisco released new details Thursday for how it plans to spend… Continue reading

The Stud, The City’s oldest gay bar which is vacating its longtime home at Ninth and Harrison streets after more than 50 years, on Thursday, May 21, 2020. (Kevin N. Hume/S.F. Examiner)
City’s nightlife recovery fund approved but struggling business owners fear relief may come too late

As San Francisco’s nightlife scene approaches nearly a year of a complete… Continue reading

Riordan Crusaders versus St. Ignatius Wildcats at JB Murphy Field on the St. Ignatius Prepatory High School Campus on September 14, 2019 in San Francisco, California. (Chris Victorio | Special to the S.F. Examiner)
State allows high school sports to resume, but fight is far from over

For the first time since mid-March 2020, there is hope for high… Continue reading

Most Read