The doubling of the rate on subsidized loans is no surprise and certainly not
unexpected. It was written into the law five years ago so students have no
reason for any self-inflected anxiety. A market-based rate will be worked out in
the next few months which should be better for both students and taxpayers.
Why don't these students just get richer parents, then they wouldn't
need these loans.
They're worried about pennies, when most of these students won't find
a job on graduation. Maybe they should be more focused on creating the big
paying jobs that all graduates are "guaranteed" by the schools. They
make claims that your starting pay will be $50,000 just for having a degree.
The reality is, if you're not an Engineer, Computer Scienece or something
along that line. Most likely you will be a server at a restaurant trying to pay
back a six figure loan.
There is no reason for the taxpayers to be in the student loan business at
all.No one is forcing students to take out loans from anyone. They
can choose to work and save to pay for their education, join the military for
some educational benefits, or to seek scholarships and grants.Too
many people go to college to avoid getting a job in the real world, or waste
their time and OUR money on worthless majors with no employment demand.Bottom line is that some politicians want to pass out "FREE MONEY!" to
buy votes from college bound youth, regardless of the cost to taxpayers.
"I may work more or ask my parents for money rather than going through all
that,"Oh, what a HARDSHIP!Cry me a river – I
worked all through college and graduated. It CAN be done.Of course
there was no urgency for BO, since HE is not up for re-election, nor is the
obstructionist harry reid. The repub house passed a fix, the dem senate
This is a democratic, slaveocrat tax increase ushered by the over spending of
Obama and his cohorts........students have no one to blame but OBAMA
Pure pandering to a young demographic for votes. 6.5% is a STEAL! I had to pay
9% for 10 years to repay all of my student loans from graduate school. There
was no Obama Clause in the wings to bail me out, and I did just fine. Quit putting expectations into the heads of young people that the government
owes them everything; subsidized interest, free birth control, Obama phones.
The interest rates on my student loans were over 8%. That said,
this article didn't point out that the House had passed a bi-partisan bill
to prevent the increase, and there was wide support in the Senate, but our
beloved Harry Reid blocked this bill from being voted on. It seems he would
prefer to create a 2014 election year issue with young, gullible Obama voters.
Watch for the upcoming ads blaming the Republican House for the increase in
interest rates, while the opposite is the truth.
I suppose that considering this is a story from the Associated Press (a big-time
Democrat sycophant) it should come as no surprise that there was no mention of
the fact that the rate increase is simply going back to where it was a few years
ago before being cut in half by Congress.Incidentally, the rate is
arbitrarily chosen without regard to any market forces. So, it is perhaps by
choice that it is so often a political football.
@TRUTH"This is a democratic, slaveocrat tax increase ushered by the
over spending of Obama and his cohort"You really need a more
accurate username. The old system we had let banks have fully backed loans so
that there was no risk for them as they charged high interest rates. In
Obamacare a change was passed to it to streamline it, cutting out the middle man
and just let the gov't do it for lower interest rates (since they
don't have the profit incentive the big banks did). If republicans had
their way we'd go back to the old system that was just a giveaway to the
Let's pay our way through college, and it won't matter what the feds
I don't understand why people are on their knees to the feds.They're government leaders, not parents.