Obama’s Budget Would Double the Interest Rate on Student Loans–After the Election

Hah, Vote For Me And I Won’t Raise Your Tuition Until After The Election …

Since the Democrats hatched the tuition ruse way back when they ran things in 2007, who is surprise.

Has anyone decided to look at the real problem with College education? How about the salaries of the educators? And the costs of going to different Colleges?

President Obama’s fiscal 2013 budget proposal would double the interest rate on federally backed student loans from 3.4 percent to 6.8 percent–eight months after the November presidential election.

The White House fiscal year 2013 plan calls for maintaining the current 3.4 percent interest rate for federally guaranteed student loans, but only through July 1, 2013, at which point it would automatically increase to 6.8 percent. Neither the president’s plan nor the Democrats’ legislation would extend the low rate beyond another year.

The president’s budget calls for “Suspending an Increase in Student Loan Interest Rates.” (See page 97).

“Under current law, interest rates on subsidized Stafford loans are slated to rise this summer [July 1] from 3.4 percent to 6.8 percent,” reads the Obama budget. “At a time when the economy is still recovering and market interest rates remain low, it makes no sense to double rates on student loans. The Budget suspends the scheduled increase for the coming year, so that rates will remain at 3.4 percent.”

The Senate bill favored by Democrats states, “in the matter preceding clause (i), by striking ‘and before July 1, 2012,’ and inserting `and before July 1, 2013.’”

The Republican alternative legislation would also extend the low rate for only another year.

Subsidized Stafford Loans are only available to students who demonstrate financial need. Starting in July, these loans will only be available to undergraduate students. The federal government does not require the borrower to pay the interest that accrues while the borrower is in school.

And you thought only the best and brightest went to college. And probably thought only students who wanted an education went to college, and graduated with useful degrees, in subjects that were needed by society. Not things like ‘women studies’ whatever that is. Why do you think there is so much college student debt out there?

Hah, silly you.

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