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Obama, Student Loans and the 2012 Election - Rate Cuts and Deals for Students and the Enthusiasm Gap

Apr 22, 2012
If Congress does not act to extend the lower rates by July 1, as millions of families could face higher payments, the White House estimates.

Can student loans and interest rates bring back the enthusiasm for Barack Obama's 2012 re-election campaign that he enjoyed during 2008 from students and other young people looking to enter college?

The outrageous price of an education past high school is continuing to soar, and now politicians and their gimmicks may make the cost even higher for some students.

Legislation passed in 2007 temporarily cut the interest rates for Stafford loans from 6.8 percent to 3.2 percent.

According to the Associated Press, Democrats are the author of those latest Washington, DC stunt designed for an election year.

Politicians in that party cut interest rates on the school loans in 2007 and included an expiration provision that placed the looming increase in the middle of an election year.

If Congress does not act to extend the lower rates by July 1, as millions of families could face higher payments, the White House estimates.

The number figures to be more than 7.4 million borrowers would be saddled with an additional $2,800 in interest payments over the course of a decade.

Obama used his weekly radio address to rip Republicans, even though it is his party that is responsible for the latest possible hike on over-burdened students.

“Over the past few years,” he said, “Republicans in Congress have voted against new ways to make college more affordable for middle-class families, and voted for huge new tax cuts for millionaires and billionaires – tax cuts that would have to be paid for by cutting things like education and job-training programs that give students new opportunities to work and succeed.”

Student debt has now topped $1 trillion.

Who had the idea to place an expiration date on the interest rates for Stafford loans - Democrats?

Is it time for all politicians to stop playing games with student's futures and trying to manipulate them during election time by threatening to charge them more money?

Or should students be happy with the big interest rate cut they received since 2007?

Related - Congress and the Student Loan Forgiveness Act - Hansen Clarke's HR 4170 a Good Idea?

(Image: WENN)

 


 

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