College Loan Interest Rates

Did you see Mr. Stivers’ note on student loan interest rates? It’s called “Back to School with More Certainty” and it was published in The Morgan County Herald. Congress let student loan rates fluctuate with the market .Mr. Stivers was congratulating himself.  I sent it to a person (my daughter) who’s effected by student loan interest rates, and here’s her critique:

“The certainty is a lie. It’s ridiculous to say that 10.5 percent on a loan for those who are getting PLUS loans is not obscene. This “allowing rates to move with the free market and ensuring borrowers can take advantage of lower interest rates when available.” is also clearly a mechanism to jack up rates while hiding behind the free market like we’ve seen a thousand times before. As  much as I wanted for this to be a bill that made a huge difference it really is just the kid with his finger in the dam, hoping it doesn’t break. We know that costs for college has gone up FIVE HUNDRED PERCENT since 1985 and my generation has very few options. There are few good jobs without a college education, and there’s life long debt with your college education, not to mention if you want to go to grad school and God forbid go into a profession where you help people where the income is going to be reduced anyway.

We do go back to class with more certainty, it is certainty that we will be in debt for the rest of our lives and will have to keep hearing from the previous generations that they paid for college with their summer job.
               So, she’s unimpressed. I liked Senator Warren’s proposal to charge student loans the same rate as the bailed out banks, i.e. less than zero. The kids are going to be the largest demographic, they’re going to remember this, and it crosses the gerrymander. Interest rates are rising right now, it’s only going to get worse. Does the Republican Party intend to alienate the kids too?      Jack

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