Skip to comments.Schumer calls on Congress to address rising student loan rates by summer
Posted on 04/07/2012 6:12:06 PM PDT by Libloather
Schumer calls on Congress to address rising student loan rates by summer
By Ramsey Cox - 04/06/12 03:08 PM ET
Sen. Charles Schumer (D-N.Y.) on Thursday announced his support for a bill to extend a reduced student loan rate for one year.
In July, the interest rates on federally subsidized Stafford Loans will double from 3.4 percent to 6.8 percent unless Congress acts.
Schumer called on Congress to pass Sen. Jack Reed's (D-R.I.) bill, S. 2051, which is pending in the Senate Health, Education, Labor and Pensions Committee.
"Rising interest loan rates sound like nails on the chalkboard for New Yorks college students," said Schumer while speaking at Union College in New York. "Federal student loans are a critical resource for students to help cope with these costs, and thats why keeping federal student loan interest rates low is a no-brainer. With July 1 fast approaching, I urge Congress to extend these low-interest rates to keep the dream of going to college alive ."
Stafford Loans are offered directly from the U.S. government, making it easier for Congress to adjust the interest rates. Stafford Loans only go to the students most in need, and students typically do not have to start paying them back until six months after graduating. The federal government pays the interest while the student is in college, unlike unsubsidized Stafford Loans which more students qualify for.
If Congress doesn't extend the 3.4 percent interest rate, students enrolling in college after July 1 would have to pay a 6.8 percent interest rate on their subsidized loans after graduation.
Why not make them interest free? Another no-brainer.
“Why not make them interest free?”
Because at some point even liberals run smack dab into economic reality. Zero interest means zero incentive for self-restraint, and zero motivation for paying off the principal. Meanwhile, guess who gets to fund more loans?
Don’t borrow the money!
Simple, Fixed next!
Oh, they'll get the loot back.
What we really need right now is a lot fewer "students".
(Schwuler = Fag in German)
I’d like to call on Schumer to give up his salary, and retirement for the good of the people!
Schumer, why don’t you call on your leadership to pass a budget.
How’s that $80,000 Women’s Studies degree working out for you? Lol
I suppose addressing tuition hikes for the purpose of feeding the big fat Union piggy bank would be too much.
It also sounds like death for our exploitative "Educational Industrial Complex" diploma mills.
If the Rats have their way, heck they’ll give it free and print more money to do this.
Student loans need to go back to the private sector and be based on the ability and willingness to repay.. Not based on government bail outs.
“Hows that $80,000 Womens Studies degree working out for you? Lol”
ABout as well as the African American studies program. I heard this is a useful degree if you plan on joining a business.
It’s only use is to be a community organizer, same as the women’s studies program.
Wonder what would happen if someone created a white, christian male studies program?
Of course this will all be in an effort to drown out the weak insipid squeaks that will be made by the GOP about the economy and the so called "Same Old Tired Policies and issues" as Obama would call them.
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CHUCK YOU GONA FIX IT! ! ! !(NOT)
See how the Dems do it, they force the issue that favors them BEFORE the election.
We had the same chance right after the 2010, during the lame duck. We could have forced Obama to act on tax cut extensions BEFORE he was up for re-election, but no...we gave him a free pass through the 2012 election.
And the same bunch is now shoving Romney down our throats.