Thursday, January 18, 2007
Congress passes legislation to cut student loan interest rates
This is good news for students who depend on loans to ensure their success after college. With less interest to pay, it puts them on a better track to financial freedom to invest in homes, children, etc. It will cost taxpayers $6 billion, which is extremely low compared to the costs of the war in Iraq (tens of billions per WEEK.) The Bush field opposes these interest cuts, by the way. Here's part of the AP story:
Washington - The Democratic-controlled House voted overwhelmingly to cut interest rates on need-based student loans Wednesday, steadily whittling its list of early priorities.
The strong bipartisan vote in the House came as a dispute between Republicans and Democrats in the Senate derailed ethics and lobbying reform that the new Democratic majority had made its first legislative initiative.
The House legislation, passed 356-71, would slice rates on the subsidized loans from 6.8 percent to 3.4 percent in stages over five years at a cost to taxpayers of $6 billion. About 5.5 million students get the loans each year.
Though clearly popular, the legislation sparked a debate over where to set the nation's education priorities - helping college graduates pay off their debts or expanding federal grants for low-income students.
Democrats conceded Congress needs to do more to make college more affordable. But they said reducing student loan interest rates was a significant step toward tuition relief.
The Bush administration opposes the bill and Senate Democrats plan to bring up a more comprehensive bill that could complicate its prospects.
For the whole story, click on the link: http://www.denverpost.com/headlines/ci_5034177
Washington - The Democratic-controlled House voted overwhelmingly to cut interest rates on need-based student loans Wednesday, steadily whittling its list of early priorities.
The strong bipartisan vote in the House came as a dispute between Republicans and Democrats in the Senate derailed ethics and lobbying reform that the new Democratic majority had made its first legislative initiative.
The House legislation, passed 356-71, would slice rates on the subsidized loans from 6.8 percent to 3.4 percent in stages over five years at a cost to taxpayers of $6 billion. About 5.5 million students get the loans each year.
Though clearly popular, the legislation sparked a debate over where to set the nation's education priorities - helping college graduates pay off their debts or expanding federal grants for low-income students.
Democrats conceded Congress needs to do more to make college more affordable. But they said reducing student loan interest rates was a significant step toward tuition relief.
The Bush administration opposes the bill and Senate Democrats plan to bring up a more comprehensive bill that could complicate its prospects.
For the whole story, click on the link: http://www.denverpost.com/headlines/ci_5034177
# posted by Tyler Stewart @ 12:28 PM 
Comments:
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I like this plan, as a student who relies on loans it would be very helpful. Even if it does not go into effect, I do feel that our government needs to do more to lower the cost of education, or find more ways to make it affordable. (i.e. more scholarships, decreased loan interests) Education is a very valued part of American society and it is almost impossible to get any sort of decent job without a college degree now, but so many can't afford to get that education. If we're going to expect everyone to get a high education then we need to help them to be able to achieve it.
# posted by 
: 6:22 PM
: 6:22 PM
Let me say that I cannot express enough how happy this makes me. As an out-of-state student with parents that cannot afford to send me to college, I have a LOT of student loan debt. ANY assistance with interest payments will be of great help. Let's face it, jobs aren't paying as well as they used too, and good jobs are fewer and further between. Especially when you need experience to get a job, but no one wants to give you experience. It's a vicious cycle, but I digress. You work so hard to achieve a college degree, but you pay for it for the rest of your life. Any extra money that you receive based on your degree goes to paying for said degree.
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