Gingrich: Obama Student Loan Plan Is a 'Ponzi' Scheme

Former House Speaker Newt Gingrich has dubbed President Barack Obama’s highly touted plan to alleviate student loan debt a “Ponzi scheme.” The GOP presidential hopeful was commenting on Obama’s plan to forgive outstanding loans after 20 years, CNN’s Political Ticker blog reports.

Gingrich, speaking at an education forum in New York, said Obama’s plan would bankrupt the country "by promising to every young person, 'You won't have to pay off your student loan as a student.'" Gingrich added, "It's a Ponzi scheme even by Gov. Perry's standards." Gingrich was making a reference to Texas Gov. Rick Perry’s controversial comments that Social Security is a Ponzi scheme, CNN reported.

Another Republican presidential candidate, Michele Bachmann, also took a shot at the president’s plan, saying it would lead to a "bubble" in higher education. "I think that individuals need to be responsible for repaying their student loan debt," CNN quoted the Minnesota congresswoman as saying.