June 25th, 2013
07:10 AM ET
10 years ago
Deadline nears for higher student loan rates
Washington (CNNMoney) - It's crunch time for students who rely on subsidized government loans - interest rates on them double to 6.8% on July 1.
Only Congress can hold the rates down, and so far it's not looking good. Washington lawmakers aren't close to agreeing on any deal to save the 7 million college students who are taking the subsidized Stafford loans this year.
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Congress, you're FIRED! Why are you waiting to the last minute to do something? This is highly irresponsible. You can bet your bottom dollar there will be people from all over the country marching on Washington if Congress allows the rates to increase. Watch!!!
The right wing does not like the Obama administration's policy to take the banks out of the loop when it comes to student loans, which was a practice started under the GWB administration.
Sorry kids, we don't want to pay for America's future. Good luck. And get off our lawn.
Let the rates rise, and let those who need funding turn to some other source, besides the government.
The GOPs believes you should ask your daddy for a loan, so what if he has to get another mortgage loan on your house the GOP garbage of America represents the banks not you, wake up people, time to kick the GOP to the curb in 2014!!!!
Rick McDaniel
Let the rates rise, and let those who need funding turn to some other source, besides the government.
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Oh, do you mean another source like borrowing $10,000 from your parents, as Mitt Romney suggested?
You don't get it. The government guarantees the loans, much like Fannie and Freddie guarantee mortgages. Private banks were never really in the student loan business because they would assign young people as higher credit risks and give them higher interest rates, which made private loans to costly and unaffordable. Private banks treated student loans like car loans.
Government got involved to give students lower interest rates than what private banks wanted to offer. The Bush administration made the same argument that you have. Get government out of the loan business, which is typical right wing refrain about everything. The result has been a massive debt pile up over the last decade in private student loans.