Is Congress Going to Double the Interest on Your Student Loan?

More Republican Class War promoting rich white privileged kid affirmative action.

Because it is a level playing field when they have every advantage in life from the medical care their mothers go while the rich kid was in the womb through the private academies, prep schools and extras while the poor kids got scraps the rich deigned to throw them.

Now they want to take away college.

Maybe it is time for working people and the poor to fight back in this Class War.

From Alternet:

Millions of young people may have a much harder time paying for an education.

By Sarah Jaffe
February 22, 2012

Unless Congress acts soon, millions of college students could see the interest rate on their federal student loans double this summer—adding $5,000 to the cost of an education for students who pay off their loans in 10 years, and around $11,000 over 20 years.

Yet Republicans are claiming that keeping those rates low costs too much and isn’t the federal government’s job. Rep. Virginia Foxx, chair of the Higher Education Subcommittee, even argued that it’s unnecessary for any student to borrow money to go to college in the first place.

Of course, that’s entirely divorced from the reality students face today. “We’ve seen massive state divestment from education,” Rich Williams, higher education advocate at US Public Interest Research Group (US PIRG), an independent research and advocacy group, told AlterNet. “That’s on top of a bad economy which has caused families to have fewer resources, and then of course the dialogue around Occupy Wall Street and the reality of student loan debt–it becomes clear to anyone paying attention, that in this economy we cannot double the interest rates on student loans.”

Back in 2006, Democrats ran on a promise to cut interest rates on student loans in half during the midterm election—a midterm that swept them back into power in Congress. They kept the promise—sort of. But deficit hawks whining about the cost of the measure kept them from cutting those rates on all federal loans, or making those cuts permanent. What they actually did was enact a plan, the College Cost Reduction and Access Act, in 2007 that sliced the interest students pay on the subsidized Stafford loans, from the 6.8 percent it had been fixed at a few years earlier, down to 5.6 percent in 2009-2010, 4.5 percent in 2010-2011, and now to 3.4 percent. But the cut expires this summer, so next year’s borrowers would once again face interest rates of 6.8 percent.

Students with families making under $40,000 a year—those who can least afford to see their interest rates jump–are the primary beneficiaries of the subsidized Stafford loan, which is awarded based on need and lent directly from the government. Stafford loans make up almost half of all federal student loans, and help families who are often not eligible for the Pell grants that help the neediest students.

Continue reading at:

Posted in Uncategorized. Comments Off on Is Congress Going to Double the Interest on Your Student Loan?
%d bloggers like this: