Playing up to big money special interests, Walker's "college affordability" initiative makes taxpayers foot the bill, so banks can continue to rake in high interest profits on sky high student loans.
Wisconsinites are now supposed to swoon over saving a possible $165 on student loan interest? If you like that, Walker's got a one dollar savings on your property tax bill he'd like to give you...oh, that's right, he's already tried that insulting voter bribe.
In a transparent sop to their campaign contributors, Republicans want to pluck another $5.2 million in state revenues, which Rep. John Macco (R) describes as "a little bit of extra money," for the purpose of saving banks a cut in their interest rates.
Democrats warned us that something like this would happen, but again no one listened. In fact, Politifact helped Walker, by playing dumb in the 2014 election claiming Walker never came right out an said he opposed a big government state refinancing program:
The group acknowledged it has no evidence that Walker opposed a 2013 Democratic proposal to create a state student loan refinancing authority. Walker may not support the idea, but he hasn’t fought it, either -- as the group claimed. We rate the statement False.Of course Walker's incredibly short sighted tuition freeze gimmick can't last forever either, but he'll never tell you that:
As reported by US News:“[This is] why such tuition freeze promises don’t last long – they generally don’t work… Opponents say tuition freezes are fine for a short-term fix, but shouldn’t be extended for long periods and don’t really solve the problem with the high cost of college.”
Nearly 500,000 Minnesotans carrying large amounts of student loan debt could be eligible for a new state-run refinancing program, "SELF Refi," intended to cut interest rates and potentially save a borrower tens of thousands of dollars. The state is fifth in the nation (WI is 3rd) when it comes to the debt students accumulate over their college years, and the average student graduates with about $30,000 in debt.
"It makes it just so much more difficult for them to do so much more in our economy, whether it is buy a house or start a small business or buy a car." Lt. Governor Tina Smith said. "If we want to have an economy that works for everyone in Minnesota, we cannot allow these high debt loads to put a crunch on our competitiveness."
On the flip side, Walker wants to get government out of the way. Look at the potential student savings in Minnesota, cash Walker is willing to give up:
Under the plan, a student who took out a $40,000 loan at 8 percent could reduce monthly payments by $200 to $300 and total interest costs by $25,000. In another example, a student who carries $70,000 in debt at 9 percent could save $52,000 refinancing.
States with refinancing of student loan programs like Minnesota's will no doubt cut into the obscene profits banks were making on interest, but that doesn't mean the banks will stop contributing massive amounts of money to Republican lawmakers everywhere to block or kill these programs eventually.
Funny thing, a banks political spending to maintain higher interest rates for struggling students - Good; Union political spending supporting struggling students - Bad: Go figure: