The Senate is expected to vote tomorrow on whether to debate a plan from the Democrats that would keep college loan interest rates on Stafford loans from doubling two months from now. The bill would be financed by raising payroll taxes on certain qualifying taxpayers that make a lot of money.
Meanwhile, Republicans have their own plan to keep the interest rate from doubling, to be financed by removing a preventive program from President Obama's health care reform plan.
As usual, both sides are at an impasse- and if they can't come to an agreement, the interest rate will double on July first.
That's why we're asking our political bloggers the following question this week: Should federal student loan interest rates be raised or lowered? Why? What do these rates mean for your child's college education? How do you anticipate paying for your child's education?
I can't help but think of a Moms Matter video about a mom named Chantal, whose family is essentially crippled by their student loan debt. Check it out:
Chantal's husband owes $90,000 in student loans. With interest, though, they owe $200,000. Their monthly student loan payment is the equivalent of a mortgage payment, and for that reason, their family of five is living paycheck to paycheck -- AND living with Chantal's in-laws.
To me, this is unacceptable. By all rights, Chantal's family should be doing fine and able to afford their own modest home. And Chantal is hardly alone. Nationwide, student loan debt now exceeds Americans' credit card debt. When student loan debt is responsible for crippling families, it's a BIG problem that affects all of us.
Expect Democrats and Republicans to come to an agreement before July first -- After all, no one wants interest rates to double.
And in the meantime, if you want to read more on the subject, the AP has a great "Student Loans 101" post that explains the issue in detail. I highly recommend that you check it out.
Here's what our political bloggers have to say on the subject:
Why Doubling Student Loan Interest Rates Is a Good Idea
Lowering Student Loan Interest Rates Won't Make Higher Education More Affordable
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Comments 25
This is a huge issue that begins with our high schools. A bachelor's is the new diploma. Because jobs can no longer depend on high school producing capable, intelligent workers who move right into the workforce with a little training. Except now, this new "diploma" costs $20,000 a year. And students who are not ready for college coursework are being shoved into college because after high school, your options are gas station attendant, college or military. So colleges lower their standards and have to put in place 000 level classes, basically remedial math, English, and science, to bring these students up to standards. And then they herd them into liberal arts degrees that offer them little or no hope of ever making enough to pay off loans. A journalist fresh out of college can expect to make $20-$30k a year. I know. That's my degree. Now all these students are working low-paying jobs in a shitty economy with an education and skills that, a generation ago, wouldn't have cost them anything because they'd have emerged from public high schools with it.
I certainly don't feel that the bill should be financed by "raising payroll taxes on certain qualifying taxpayers that make a lot of money." How ridiculous is that? How is that fair? You make more money so they take it away and give it to someone else? Maybe they just got done paying for their own student loans. If you can't afford college, don't go or work your way through like we had to do. Work hard during high school to get all the scholarships you can. Save your money. Going to college isn't a right. It's a privilege and if you choose to go, you should make arrangements to pay for it yourself.
What world are you living in Jafe? People making minimum wage (which is what you'll make without a college degree) can't afford to pay their regular bills but they should save up for college? They should work their way through college? How? When? Even the cheapest community college costs what a minimum wage worker earns in a year. Scholarships are fine if you can get them but there are only so many to go around and having good grades is not a guarantee of getting one. Student loans are vital for most families. That being said, I think it should be harder to get a loan not more expensive. What I mean is no more student loans for people who are going to college just to go. Majoring in philosophy or art history? No loan for you. Why? Seen any want ads for philosophers lately? Working people should not have to subsidize useless degrees for people who are going to end up working at that gas station anyway. For people who are getting useful degrees, trying to make a better life, trying to end a cycle of poverty, student loans should be available and affordable. Do you want to support loans or public assistance?
Student loans are a bad, bad idea. Why does anyone think it's a good thing to begin your adult life with massive debt hanging over your head?
Right on, ashjo85! Except for the part about schools being good a generation ago. They've been crappy far longer than that.
BRAVO, JAFE! If you can't afford it, don't buy it.
Yes, nursemc. JAFE is living in the real world, not a fantasy land where someone else pays for the things you want. I repeat, IF YOU CAN'T AFFORD IT TO PAY FOR IT, DON'T BUY IT. You have no right to expect others to pay for it for you.
I'd also like to point out your use of another liberal tactic to try to skew the conversation, the false either or premise. In other words, it's NOT a college degree or welfare. How do I know? Because neither my husband nor I have college degrees, yet, he is partner in and president of a multi-million dollar construction company.
Oh, and to answer the 'how do I plan to pay for my children's college education' question, I don't. They are expected to pay for it themselves.
First of all, no one else is paying for my education. What they are paying for is profits for the bank. I paid my student loans plus a fair interest rate. If the banks want to raise interest rates, it's not out of neccesity, it's out of greed. Most people just graduating high school cannot afford to pay for college outright without help. I wish I could have run to mommy and daddy with my hand out and then bitch about people not helping themselves but that's not reality for most people. I understand saying if you can't afford it, don't buy it when it comes to luxuries, but college had become a necessity for most people. Good for you if your husband (I noticed it wasn't you) has a marketable skill that doesn't require a degree but again, that's an exception not the rule.
My daughter in law just got done paying her student loans after 12 years of nursing. She worked all the way through high school. She had a band, 2 athlete and 4 other scholarships and STILL had an enormous cost. Are you telling me that she can do it but nobody else can? Now that hers is paid, should she start paying for someone else's? Give me a break.
College should be paid for BY THE PERSON WHO'S GOING. Not your neighbor who "might" make more money.
ALSO, I'm living in the real world where we pay for what we want to purchase. College is a "purchase." Otherwise why don't we all put our paychecks into a pot and equal it out?? Then we'd all have the same amount of money. I'll bet you the same people who have "more money" now, will also have more money then. People make choices in life and their choices should be paid for by those individuals. I bet a lot of the people whining about not being able to afford it are people that eat fast food or smoke or have a few cocktails. I'll bet their closets are full of cute clothes. What you WANT to afford, you find a way of affording.
THAT IT ONLY ADDS 9 DOLLARS TO THE AVERAGE STUDENT LOAN MONTHLY PAYMENT.
you gonna reelect that idiot for that??????