April 24, 2014

What Could Possibly Go Wrong?

The lovely bride queued up Atlas Shrugged Part 1 on the TiVo. I will admit is not "Citizen Kane," but I find the first Hank and Dagny quite endearing.

The WSJ abruptly thrusts the Part III tagline: "Now Non-fiction" into view with an editorial on President 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?

I have a friend who rails on Facebook at any mention of the makers/takers distinction -- he becomes quite animated at the suggestion that any of the poor or dependent are in any way culpable for their situations. Yet each of these programs are bricks with largess mortar that wall the two groups.

[Kids, don't try these advanced metaphors at home -- these are trained and highly-caffeinated bloggers...]

Education Posted by John Kranz at April 24, 2014 10:42 AM
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