As of July 1, 2012, Federal student loan rates, now set at 3.4%, are set to double. I assume that means 6.8% but I have yet to see a number reported and given the math skills exhibited in Washington for the past thirty years, the new rate could be anything from 3.45% to 6000%.
This creates an additional burden on those receiving the loans. Granted.
The members of Congress are busy throwing dog turds at each other, not because they are fighting over the rate – both Democrats and Republicans want to keep the rate at 3.4% – but they are fighting on how to fund the additional 6 billion-with-a-B it will cost to fund keeping the rates low.
Think about that for a second.
It’s going to COST six billion dollars to loan money out….at whatever rate…and have it repaid with interest..so that the lender makes money. Unless economics has taken a severe dogleg to the left into the primeval forest, that’s the way loans are supposed to work aren’t they? It’s not supposed to cost anybody anything expect the person paying BACK the loan.
So how, in God’s name, will lending money COST money??? BECAUSE THEY DON’T HAVE THE FUCKING MONEY TO BEGIN WITH! They are lending money they don’t have. Period. How so unlike our government. I am amazed.
The Republicans want to cover the 6 bil by cutting preventative health care funds. The Democrats want to screw small business by cutting their tax benefits to cover the tab. Stupidity reigns on both sides of the aisle.
But hold on, cooper, I hear you say. How are kids going to cope in the global geopolitical economy if they don’t go to $50K a year universities…familes can’t afford that. The kids can’t afford to come out of four years of school with 200K in debt over their heads. And I would agree with you. I guess the kids are going to have to go to a 10-15K a year state college. There is no constitutional amendment entitling every child to go to Princeton, Bucknell or Penn State. We might as well just turn these schools over to the only people who can afford to go which are scholarship winning athletes and let pro sports pick up the tab for their (cough) education. They seem to have endless supplies of money to spend on scummy creeps like Cole Hamels, Michael Vick, and Pacman Jones.