Posted on 06/16/2014 6:46:45 AM PDT by YourAdHere
For the millions of Americans encumbered with college debt, relief was snatched away this week when Capitol Hill Republicans blocked measures that would have allowed borrowers to refinance their loans.
House and Senate Republicans on June 11 stymied progress of the Bank on Students Emergency Loan Refinancing Act, which would have allowed borrowers with college loans issued prior to 2010 to refinance at 3.86 percent—the rate established by Congress last year.
The White House, which supported the legislation, said the bill could have allowed an estimated 25 million student loan borrowers to save an average of $2,000 over the life of their loans. The measure would have been paid for by enforcing the Buffet rule—closing tax loopholes for the very rich.
“This should be a no-brainer,” President Obama said June 9 during a press conference to announce executive actions to make college more affordable. “It would be scandalous if we allowed those kinds of tax loopholes for the very, very fortunate to survive while students are having trouble just getting started in their lives.”
Sponsors of the bill said they had received bipartisan support, but Republicans seemed to balk at the means of finance.
“Today is a really good day for billionaires,” Sen. Elizabeth Warren (D-Mass.), one of the sponsors of the bill, said at a press conference after the vote. “For the more than 40 million people dealing with student loan debt it wasn’t such a good day.”
“The Republicans have said they don’t like how it being paid for—closing tax loopholes on millionaires and billionaires,” she added. “If they have an alternative plan then bring it forward. That’s what we’ve asked for.”
“We’re not giving up,” she said. “Homeowners are refinancing. Small businesses are refinancing. We just want young people who got an education to have their shot.”
The legislation was introduced amid growing public concern about the toll of student loans on the economy.
Over the past three decades, the average tuition at a public four-year college has more than tripled, while a typical family’s income has barely moved. As costs rise, more students than ever are relying on loans to pay for college. Today, 71 percent of those earning a bachelor’s degree graduate with debt, which averages $29,400 per student. Outstanding student loans now total more than $1.2 trillion, surpassing total credit card debt, according to a White House report.
On June 9, President Obama signed an executive order that allows about 5 million more borrowers—those who took out loans before 2007—to cap their monthly payments at 10 percent of their incomes, among other measures intended to address the problem.
“At a time when higher education has never been more important, it’s also never been more expensive,” Obama said. “If somebody plays by the rules, they shouldn’t be punished for it.”
Privatize the Federal Student Loan Give-Away Program.
So people that actually produce wealth and jobs should turn over more of their money to the governmant in order to allow the college industrial complex to charge 3x what it used to in education kids. These morons signed the deal...let them pay it off on the terms they agreed to.
The millionaires and billionaires are responsible for how many of the jobs in this land? Oh, but let’s not get confused by the facts.
Yup, follies.
Another Brilliant Big Gov Idea
Extort tax money from working people, many of whom could not afford college themselves, to finance liberal colleges via Big Gov subsidized student tuition.
$2000 over the life of the loan? Man, that’ll really cut into those welfare/disability checks.
There you go, Lie-a-watha. Fixed it for ya. You're welcome.
Make the colleges co-signers to the loans. If they graduate somebody who can't get a job with the education they gave them, the college eats the loan.
This will make colleges more selective about who they admit, and shut down majors with a poor record of producing employability.
HMM, I never got a job from no poor person !
These kids need their degrees in Classical Studies and 12th. century Tibetan poetry. The better too be educated greeters at WalMart.
Wise words from a multimillionaire who's net worth is somewhere north of $14M. Nice pile of wampum, there, Liawatha!
True that.
Yeah, let's be all concerned about Americans having to pay for a loan they voluntarily took out, but not worry about how they will pay for involuntary Obamacare.
Proof how far this country has fallen.
Excellent point.
You’ll notice they don’t get specific with the “loopholes” which means they probably won’t provide that much money or they didn’t apply to just the billionaires.
Great ideas.
Anyone can refinance any debt any time they want, and no new laws are needed to do so.
Just take out a bank loan to pay off the debt, all it requires is being credit worthy.
Local news coverage of this appeared to consist of anchors reading a handout from the DNC.
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