Hat tip Daily Caller and Campus Reform
Is there a connection here?
As stated many times, I am no genius when it comes to economics and financial issues. I just found myself wondering if these two stories have a connection. On the one hand, student loan interest rates are going up significantly, while on the other, we find that money from the federal program has been taken out to help fund good old Obama Care.
http://dailycaller.com/2013/07/01/yep-student-loans-just-doubled/
http://www.campusreform.org/blog/?ID=4817
So somebody please help me. I will await Siarlys Jenkins' explanation.
Sounds like a temporary scheduling glitch to me. Nothing about using the money to fund any other program. Elizabeth Warren's proposal makes good sense, don't you think?
ReplyDeleteIts much better for taxpayers to get the interest, rather than private banks getting the interest while taxpayers guarantee the loans. But the whole point is to make the loans available at low rates. "Low" should have some relation to the general market. If banks go back to charging 10% annual interest on a home mortgage, then study loans at 6 percent might be reasonable. Or, for policy reasons, might not be such a good idea.