Students to feel pinch in debt deal
August 1st, 2011
04:09 PM ET
7 years ago

Students to feel pinch in debt deal

WASHINGTON (CNNMoney) - Some students will have to start paying off their loans while they're in school under a last-minute debt ceiling deal to keep the country out of default and reduce deficits by at least $2.1 trillion over a decade.

As part of the savings to trim the deficits, Congress would scrap a special kind of federal loan for graduate students. So-called subsidized student loans don't charge students any interest on the principal of student loans until six months after students graduated.


Filed under: • Debt • Deficit • Education
soundoff (23 Responses)
  1. Rudy NYC

    OOH! That is going to hurt many students. Most of the time students don't begin paying back loans until after they graduate.

    Now students will have pay years of interest if they wait until they graduate. I don't think many students will be out there doing that, though.

    What I think will happen is that students will get part-time and full-time jobs to "pay as you go" on these loans. We all know what happens when a student enters the work force before finishing school. The odds increase that the student will not finish school.

    August 1, 2011 04:18 pm at 4:18 pm |
  2. No more tea for me!

    Thanks to the stupid tea party hobbits, can't wait till election day! Send the hobbits back to middle earth where they belong!

    August 1, 2011 04:19 pm at 4:19 pm |
  3. Blackman in America

    So repuks/KKK/teabaggers continue to go after college education students........................but they want to remain in the lead for an educated public. WHAT a JOKE

    August 1, 2011 04:23 pm at 4:23 pm |
  4. gt

    what !... no more keg parties.. whats up with that.. heck they might have to get a part time job... now that s cruel....

    August 1, 2011 04:35 pm at 4:35 pm |
  5. The Day of Financial Reckoning is HERE - The Great Democrat Welfare Society Ends

    Welcome to SHARED SACRIFICE kiddies!! You are being asked to do YOUR part. Now stop whining and take a part time job. Welcome to the real world you spoiled little brats!

    August 1, 2011 04:41 pm at 4:41 pm |
  6. Rick McDaniel

    Student loans, have become too essential a part of higher education. One really has to ask.......if the government didn't provide all this money to people, for student loans, would tuition be as high as it is????? I think NOT! Higher education is doing the same thing that Banks do.......the more you are willing to borrow, the more they will charge!

    You want to see tuition drop, stop having a 75% student loan rate, for college, paid for by the government.

    August 1, 2011 04:45 pm at 4:45 pm |
  7. S. In California - Obama 2012

    Remind me AGAIN what good democrats received from this deal. If only I had the money to LEAVE this God forsaken country I would.

    August 1, 2011 04:45 pm at 4:45 pm |
  8. PhD student

    For everyone who has posted...this article is refering to graduate students (aka Masters, PhD, MD, JD, etc students). Seems like many of you are thinking of undergraduate students...

    Many programs do not allow outside employment, unless you petition your advisoree comittee to allow you to seek it. Some programs cover tuition and provide a stipend, others do not and require the student to take out massive student loans which are (reasonably) easily payed back after the degree has been attained.

    Looks like the government is just going to make things even harder for some US citizens to obtain advanced degrees.

    August 1, 2011 04:48 pm at 4:48 pm |
  9. The Greedy Old Pigs have declared class war on US!

    Mr. "Day of Financial Reckoning". what "sacrifices" are the ultrarich making? What sacrifices are big corporations making? I'm seeing zip, zero, nada, zilch. You keep posting garbage here about "entitlements" and you continue to demonstrate a psychopathic lack of empathy for your fellow man, yet you mention nothing about the vast amounts of corporate "entitlements" that go to the politically controlling corporate welfare queens. Why is that? Do you honestly not see it or are you just another cultist who cares for the greedy and not the needy?

    August 1, 2011 04:50 pm at 4:50 pm |
  10. Marie MD

    Instead of wasting your time drinking beer and being "young" get your butt of your chair and drop the extreme games and vote next November 2012 and help get rid of the teatards in congress.

    August 1, 2011 04:51 pm at 4:51 pm |
  11. bill

    obama said we all have to sacrifice. Looks like you get to do your part like the rest of us. Enjoy!

    August 1, 2011 04:52 pm at 4:52 pm |
  12. fbmarky

    Health care and education should only be available to rich folks. Us poor heathern just don't have what it takes to survive in this country – namely millions of dollars.

    August 1, 2011 05:00 pm at 5:00 pm |
  13. CollegeStudent

    Yeah all we do is get nuts in keg parties and read Soviet Literature in an effort to get rid of democracy. Since when is education welfare? You may be saving money in the short run but its going to comeback when students are dropping out. I have a part time job to cover my expenses, the rest is scholarships and a small portion is loans. Am I supposed to work more when I'm already stretched? Or would asking for a subsidized loan be spoiled? If only I had a corporate jet...then the maybe the govt would help me out.

    August 1, 2011 05:00 pm at 5:00 pm |
  14. Indie voter

    The republicans/tea baggers can't benefit from an educated electorate. They prefer to keep everyone dumb and ignorant like their supporters. Feeble minds are easier to fool and manipulate.

    August 1, 2011 05:04 pm at 5:04 pm |
  15. YesWeCan

    Why don't we let these students inlist in the army for 4 years after they graduate and this can payoff their loans. If a MBA degree loan, 6 years of sevivce would be required.

    In all reality, parents should have saved for their kids college funds. Shoud not be left up to the rest of tax payers to fund their college anyway.

    August 1, 2011 05:13 pm at 5:13 pm |
  16. YesWeCan

    Parents should pay for kids college. Not on the backs of hard working tax payers.

    This is not a party issue. Parents failure to plan and save, they are responsible and accountable.

    Advance degrees should not be eligible for any US loans.

    Get out of my pocket you lazy kids and undeciplined parents.

    August 1, 2011 05:20 pm at 5:20 pm |
  17. SecedingfromTexas

    @Greedy Old Pigs...............
    Thank you for your comments to "Day of Financial WRECKING............."
    It was time.

    August 1, 2011 05:22 pm at 5:22 pm |
  18. SecedingfromTexas

    Do you really believe that garbage or are you one of the tea bags that has "no sense of decency"?
    These are called LOANS, which means they are paid back! Glad to know you got a free ride with your
    education, assuming you went past grade school, which, by the way, is taxpayer funded and worth
    every penny.

    August 1, 2011 05:26 pm at 5:26 pm |

    Well, maybe now the students can stop being indifferent to their country's political system and and vote in 2012. You get what's handed to you unless you participate in your civic duty. I'm paying my student loans back and I vote.

    August 1, 2011 05:27 pm at 5:27 pm |
  20. B

    Everyone accept the Corporations are going to feel More heat because Obama gave away the store again..

    At some point, Americans expect the President to show some Stones in support of all that rhetoric thrown around during the campaign!

    What most realize now is that we have a repeat of Jimmy Carter........a Total lack of any forceful demeanor !

    August 1, 2011 05:30 pm at 5:30 pm |
  21. YesWeCan

    I am all for higher education. But not paid for by my tax dollars. No more free lunches or student loans. Not until this country is in the BLACK again. If you want to personally loan your hard earn money, go ahead. I'm counting on congress (both sides and both parties) to stop spending on this amd don't come to us for more taxes (code word revenue).

    August 1, 2011 05:30 pm at 5:30 pm |
  22. The Greedy Old Pigs have declared class war on US!

    What's wrong with you people arguing against student loans? Our country is dropping like a stone in the international educational attainment rankings and you want to make it WORSE?!? An investment in education is like an investment in infrastructure that benefits us all. Look at corporate welfare if you want to see some senseless entitlements. Where's your outrage about that?

    August 1, 2011 05:31 pm at 5:31 pm |
  23. gt

    this will casue a huge drop in the economy,,,do you know how many video games will not be bought,, what about all those spinners on those collge kids cars that wont be spinning... plus iphones , bongs, fashion clothes and of course spring breaks in florida or cancun... this is major dude....

    August 1, 2011 05:39 pm at 5:39 pm |