I know a lot of you young college students were all excited when President Obama was elected and re-elected on a message of hope and change. I also know many of you were excited about “free health care coverage for all Americans” after all we live in such a rich country, why not? You were probably also excited when President Obama decided to take over student loans and not allow banks to rip you off any more on the rate increases.
[I plan to post a few cynicism lessons from time to time and promise to skewer all political parties, etc. I am not an anarchist but I believe in personal freedom and a small government. Unfortunately, those concepts are under attack by all parties.]
Cynicism is an attitude or state of mind characterized by a general distrust of others’ apparent motives believing that they are selfish in nature and/or displaying that themselves.
I am sorry to start your long descent into the never ending layers of cynicism, but here is what really happened:
1) Banks were making about $57 Billion per year off student loan interest.
2) Student loans were federalized (taken away from private banks) as a clause in the Affordable Healthcare Act (AHA), not to help you, but to get that $57 Billion to help pay for “free health care” coverage.
3) The Obama Administration put in automatic escalator calculations in your student loan rates that would have raised them to 7.5% from their former 1-2% range, raising the federal income off student loans from $57 Billion per year to about $350 Billion.
4) When students became outraged, Congress cut this percentage to 3.86 to 6.41% depending on the category of loan, basically still tripling the private bank rate, but telling you they ‘saved you money’ by a temporary one year cap. (http://studentaid.ed.gov/types/loans/interest-rates)
5) The evil banks meanwhile get loaned money from the federal reserve at the fed funds rate of 8/100 ths of a percent. That’s right. You pay at least 3.86% to get your education, while the evil banks get money from the Obama administration at 0.08%. (http://www.federalreserve.gov/releases/h15/current/)
6) The evil banks were bailed out and posted record profits this year.
7) Your current $54 per semester policies to cover your health while you go to college are now illegal under ACA. Your new plans will cost you $1,800 per year, a 1500% increase, even though you are not going to be sicker than you were before. This is so you can pay for the healthcare of older people through your premium, along with your higher cost student loans. (http://www.foxnews.com/politics/2013/11/18/students-suffer-sticker-shock-from-obamacare/)
8) So you are going to tell them to take a hike? Sorry, the IRS will cut off your student loans, bill you a fine and withhold your refunds if you do not participate.
9) So far, less than 200,000 people have made it into AHA while over 15 million have had policies canceled. Some estimates show up to 100 million policy cancellations this year, due to regulations put in place by Secretary Sebelius under AHA.
10) Evil insurance companies no longer have to take risk, sell you plans, or price things individually. They just put three offerings on the exchanges and let the enrollees and profits roll in.
11) The Obama Administration spent over $600 million on Healthcare.gov and it still does not function.
12) The Obama Administration spent $4.4 Billion giving money to states for exchanges that do not work either.
Welcome to government run programs. This is how bad and costly it is just to get started. Just wait until they run short of money for the actual treatment of patients and see what happens then with waiting times and restriction of access to care and drugs.