Monday, April 22, 2013

State Republicans whine Students left with Massive Loan Debt, yet Congress wants to raise rates to reflect market. I'm seeing a pattern.

Here we go again. While Republicans on a state level whine and complain about tuition hikes that leave students with massive student loan debt, Republicans in Congress are pushing for “market loan rates,” instead of the current low student rate of 3.4 percent.

Can they get away with that?  
The Hill: With just over nine weeks to go before rates hike, Congress seems nowhere close to finding a solution to stop student loan rates doubling from 3.4 percent to 6.8 percent on July 1.

Rep. Joe Courtney (D-Conn.) told The Hill that … any solution to come at the last minute … the United States Student Association (USSA) is pushing for a bill introduced in March by California Democrat Karen Bass that would make the current rate of 3.4 percent permanent. Its prospects in the Republican-controlled House are remote.

President Obama called for a market-based rate proposal in his new budget. House Education and Workforce Committee Chairman John Kline (R-Minn.) (said) “My Republican colleagues and I have long believed returning to a market-based system for determining interest rates just makes sense and will provide more stability for borrowers. 
What provides “more stability for borrowers” than a permanent 3.4 percent interest rate? The market, really?

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