Skip to content

Is it College or Kollege? Congress can't agree, so student loan rates will double on Monday

By Catholic Online (NEWS CONSORTIUM)
6/28/2013 (4 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 (4 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.

---


'Help give every student and teacher Free resources for a world-class moral Catholic education'


Copyright 2017 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for OCTOBER 2017
Workers and the Unemployed.
That all workers may receive respect and protection of their rights, and that the unemployed may receive the opportunity to contribute to the common good.


Comments



More College

Finding the right College

There's no magic formula for choosing a college, but there are steps you can take to find a good fit. Use this tool to start your journey.

Latest College News

Loras College announces new business school

Image of The College is now accepting students for the fall 2018 semester.

Already known for its legacy of successful, community-driven leaders, Loras College, Iowa's first college and the second oldest Catholic ... continue reading


Georgetown apologizes for mass slave auctions to pay off Catholic University debts Watch

Image of Georgetown apologized to ancestors of slaves sold to Louisiana to pay off Georgetown University debts.

One hundred and seventy-nine years ago, two Jesuit priests sold 272 persons at a slave auction. Their families were torn apart: many of ... continue reading


Pope Francis to university students: keep hope alive

Image of

(Vatican Radio) Pope Francis on Friday visited one of Rome's major institutions of higher education today: the  Universit√ɬ† degli ... continue reading


BREAKING: UCLA on lockdown after shooting on campus Watch

Image of UCLA is on lockdown.

The UCLA campus has been put on lockdown after reports of a shooter in the university's Boelter Hall were released via social media. ... 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).

In a move reminiscent of the early 1900s, North Carolina State University segregated a student Christian group from the rest of the student ... continue reading


Never Miss any Updates!

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

Information
Learn about Catholic world

Catholic Online
Inform - Inspire - Ignite

Catholic Online Saints
Your saints explained

Catholic Online Prayers
Prayers for every need

Catholic Online Bible
Complete bible online

Catholic Online News
Your news Catholic eye

Daily Reading
Today's bible reading

Lent / Easter
Death & resurrection of Jesus

Advent / Christmas
Birth of Jesus

Rest of Catholic Online
All Catholic world we offer

Services
Products and services we offer

Catholic Online Shopping
Catholic medals, gifts & books

The California Network
Inspiring streaming service

Advertise on Catholic Online
Your ads on catholic.org

Catholic Online Email
Email with Catholic feel

Catholic Online Singles
Safe, secure Catholic dating

The California Studios
World-class post production service

Education
Learn the Catholic way

Catholic Online School
Free Catholic education for all

Student Classes
K-12 & Adult Education Classes

Catholic Online MasterClass
Learn from experts

School Teachers
Teacher lesson plans & resources

Catholic Media Missionaries
The New Evangelization

Support Free Education
Tax deductible support Free education

Socials
Connect with us online

Catholic Online on Facebook
Catholic social network

Catholic Online on Twitter
Catholic Tweets

Catholic Online on YouTube
Enjoy our videos

Catholic Online on Instagram
Shared Catholic moments

Catholic Online on Pinterest
Catholic ideas style inspiration

Catholic Online Logo

Copyright 2017 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2017 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.