Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

6/28/2013 (3 years ago)

Catholic Online (www.catholic.org)

When you elect clowns, you get a circus.

Students loan rates are about to double on Monday because we have elected Congressional representatives who can't agree on virtually anything. This is just the latest real-world impact people will suffer as the Congressional circus continues.

When you elect clowns, you get a circus.

When you elect clowns, you get a circus.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

6/28/2013 (3 years ago)

Published in College & University

Keywords: College, University, loans, rates, interest, Congress, Senate, clown


LOS ANGELES, CA (Catholic Online) - Holders of student loans have been told to watch out. The rate on their subsidized Stafford loans will soon double from 3.4 percent to 6.8.

Yes, this is seriously the subject of intense Congressional wrangling and has been for over a year. Not PRISM, not Obamacare, not the IRS. These issues are back-burnered while Congress debates student loan rates--an assignment they should have turned in a year ago.

Democrats promise the rate increase will be both temporary and reversible. This isn't the issue. The problem is that it's happening in the first place.

Today, college educations are more expensive than ever to finance, and only the exceptionally well-prepared, the wealthy, and those fortunate enough to enjoy generous scholarships, can afford a full four-year degree. Graduate school on top of that can easily add another $20,000 or more to a student's finances.

Students are graduating with the price of a fine luxury car or small home on their credit reports, but little to show for it. -For some, college degrees are little more than expensive pieces of paper.

This is different from previous generations that could attend college with the benefit of a small scholarship and some modest savings when combined with a job. Now, with double-digit tuition hikes and increasingly expensive material such as books, housing, and transportation costs, fewer students can afford a full college education on their own and must finance the entire bill with loans.

This leaves many graduates graduating under the burden of debt that can range from $30,000 to over $100,000. In addition to crushing debt, students face dimmer employment prospects, stagnant wages, and now higher interest rates.

Some students deal with this by deferring their loans, an option that remains available as long as they continue taking classes - which requires more financing and means more debt.

We are left with an ever-increasing population of young, educated minds, burdened with debt and no relief. Atop that, we are increasing the financial pressure, even if for a moment.

The Senate has promised students that the rate increases will be rolled back in a late, but upcoming deal, and those rates will be retroactive. Despite those promises, faith is low. The issues has been looming for a year and an agreement has remained elusive because of partisan bickering.

Republicans want to tie the interest rates to the government's cost of borrowing. Democrats don't want to see any changes. Obama has promised to veto the Republican idea saying it would create too much uncertainty for parents and students.

The problem is similar in some ways to the healthcare crisis. With wages stagnant and unemployment high, Wall Street and moneyed interests, not to mention Congress and the President, enjoy good returns, comfortable finances and benefits while the rest of America struggles to cope with rising prices. Healthcare costs continue to rise by double digits every year and under Obamacare may even double or more.

Likewise, education costs have spiraled out of control as colleges and universities and publishers have realized that students will borrow to the hilt rather than forgo college.

This may change. Two out of five students fall behind on their loans and if economic conditions should worsen before something is done, a significant proportion may default. This is because college, like home prices before, is on a bubble fueled by easy lending.

At least with so many educated and desperate graduates out there, employment costs should go down, bringing some outsourced jobs back to the States. But there's no telling just when that may happen and how significant it could be, and with Congress unable to agree on virtually anything, there's plenty of uncertainty for parents and students in the status quo to worry about.

When you elect clowns. You get a circus.

---


Pope Francis: end world hunger through 'Prayer and Action'


Copyright 2016 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for SEPTEMBER 2016
Universal:
Centrality of the Human Person: That each may contribute to the common good and to the building of a society that places the human person at the center.
Evangelization: Mission to Evangelize: That by participating in the Sacraments and meditating on Scripture, Christians may become more aware of their mission to evangelize.



Comments


More College & University

BREAKING: UCLA on lockdown after shooting on campus Watch

Image of UCLA is on lockdown.

By CALIFORNIA NETWORK

The UCLA campus has been put on lockdown after reports of a shooter in the university's Boelter Hall were released via social media. Police reported a shooting on the UCLA campus, issuing a tweet to say that the school's Westwood campus was on lockdown following a ... continue reading


Christian students in U.S. not allowed to speak to other students without permits Watch

Image of Christian liberties denied at North Carolina State University (Wikipedia).

By Kenya Sinclair (CALIFORNIA NETWORK)

In a move reminiscent of the early 1900s, North Carolina State University segregated a student Christian group from the rest of the student population. LOS ANGELES, CA (Catholic Online) - Grace Christian Life is a registered student Christian group on NC State's ... continue reading


Benedict XVI Centre approved by Holy See, but what will they be doing there? Watch

Image of The center will focus on religion and social sciences (CDJ).

By Kenya Sinclair (CALIFORNIA NETWORK)

St. Mary's University in Twickenham, London has been formally approved to name one of their buildings after Benedict XVI. LOS ANGELES, CA (Catholic Online) - According to its website, St. Mary's University will name one of their buildings the Benedict XVI Centre for ... continue reading


Alarming University campaign threatens First Amendment rights Watch

Image of The University of Portland asks students to report discrimination, interactions of intolerance and incidents of discomfort (Stefan Redel/Shutterstock.com).

By Thomas Heed (CALIFORNIA NETWORK)

The University of Portland recently launched a "Speak Up" campaign designed to put an end to discrimination, intolerance and "incidents of discomfort." LOS ANGELES, CA (Catholic Online) - The University's Speak Up website specifies inclusion is a top priority - one ... continue reading


Comparing some students to 'Catholic jihadis,' Mount St. Mary University president comes under fire Watch

Image of Mount St. Mary University President Simon Newman said in a memo,

By Adelaide Mena and Matt Hadro, CNA News

Amid uproar over comparing struggling students to bunnies that should be drowned or shot, Mount St. Mary's University president is now under fire for criticizing expressions of the Catholic faith at the school. Emmitsburg, Md. (CNA) - Already facing turmoil, the ... continue reading


The fight for religious liberty: How one Catholic college deals with threats Watch

Image of

By Matt Hadro (CNA/EWTN News)

The future of religious freedom in the United States will one day be in the care of today's college students, so one Catholic college is working to equip them for that struggle. Washington D.C., (CNA/EWTN News) - Wyoming Catholic College is trying to form a "community ... continue reading


4 reasons Catholic education needs your help this year Watch

Image of Are America's Catholic schools being attacked? (Wordpress)

By Kenya Sinclair (CALIFORNIA NETWORK)

The Catholic education system is coming under attack by a plethora of policies designed to make the hiring process, acceptance of anti-Christian viewpoints, transgender issues and Catholic identity concerns. LOS ANGELES, CA (Catholic Online) - The Cardinal Newman ... continue reading


Catholic identity or education: Are the top Catholic universities falsely rated by secular standards? Watch

Image of

By Kenya Sinclair (CALIFORNIA NETWORK)

A list of the top 40 traditional Catholic and Jesuit colleges in America was created, but were they rated fairly? LOS ANGELES, CA (Catholic Online) - Newsmax revealed their top forty Catholic and Jesuit colleges in America, but what were their standards?The United ... continue reading


Becoming Divine Mercy: A Mission of Mercy Watch

Image of

By Jessie Tappel, Communications Director at Divine Mercy University

God, the source of all mercy, provides us with an experience so great that we have no choice but to reflect it to our own brother and sister. Mercy calls for an outward response, which is made clear in the examples of the Corporal and Spiritual Works of Mercy. You can ... continue reading


UST Breaks Ground on New Center for Science and Health Professions Watch

Image of

By Darnell Miller - University of St. Thomas

The University of St. Thomas, a member of the world-renowned Texas Medical Center, broke ground on a new Center for Science and Health Professions on Nov. 12, 2015. The new facility, containing more than 100,000 square-feet of modern lab space and classrooms, will meet ... continue reading


All College & University News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Subscribe to Catholic OnlineYouTube Channel

Daily Readings

Reading 1, Job 42:1-3, 5-6, 12-16
1 This was the answer Job gave to Yahweh:2 I know that you are ... Read More

Psalm, Psalms 119:66, 71, 75, 91, 125, 130
66 Teach me judgement and knowledge, for I rely on your ... Read More

Gospel, Luke 10:17-24
17 The seventy-two came back rejoicing. 'Lord,' they said, 'even the ... Read More

Saint of the Day

Saint of the Day for October 1st, 2016 Image

St. Therese of Lisieux
October 1: Generations of Catholics have admired this young ... Read More