In the midst of our emergence from the worst economic downturn in nearly 100 years, why is it necessary for Congress to raise student loan interest rates significantly above what it actually costs to borrow the money? This policy hurts our recovery particularly for students graduating from college into what is being called a "jobless recovery". Graduating college students saddled with extra debt take even longer to arrive at the point where they can buy cars and homes, marry and start a family.
Doubling student loan interest rates puts an extra burden on one of the populations in our country least able to manage it. Students and their families need to know that the government will pocket 4% of the new 6.8% rate. Some countries loan money to students to finance college on an interest free basis. Families need to look at the records of their legislators on this issue as the decide how they will vote. Our country and families need legislators more likely to care about the progress of their constituents and the future of our country. The two are synonymous.
Families in the US have largely toughed the recession out. They have tightened their belts without complaining. You can see the tightened belts in what is and what is not in the baskets of many shoppers at the supermarket. It is also evident in the anxiety of parents over college costs. It is time for Congress to rise above party and politics and serve the people who elected them. As students graduate from college, they will have ten years of unnecessarily larger student loan payments as a souvenir of what this Congress did to them.