Politics and Student Loans
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Finally, both parties (at least) agree that the doubling of subsidized Stafford loan rates on July 1st should be avoided and current rates extended.
Problem is, of course, that the two cannot agree as to how to cover the cost, a non-too paltry sum of $5.9 billion – which in the large macrocosm of our economy, is very little, a few weeks in Iraq.
For despite reversing a previous creed to double the rate in their 2013 budget, Republicans now are in favor, hoping to pull the funds from the Affordable Health Care Act.
Democrats alternately argue that funds should come via removal of oil subsidies that give producers large tax credits.
In fact, Democrats have long argued, and lost a vote, on removing the oil subsidies but have always been met with resistance from the right.
But Democrats may have actually gained the upper hand in this battle by attaching the subsidies to something more important to the average voter: higher education and student debt.
Basically, the argument comes down to ‘health care’ versus the ‘health of oil companies’. We would give Dems the edge here, in an election year, while also questioning the GOP strategy to hold firm on oil, an industry with record profits in a recessionary economy. Populism it is not.
Yet, unfortunately, the ones who get left out out of the discussions are the students themselves and the possibility that their interest rate will double on July 1st.
Most believe sanity will rein and the rate will be kept at the current level sometime before the end of June, yet many also suspect the fight on how to pay for it to be protracted and vicious.
It is far too inviting for both parties involved. Pity the lowly student in the middle.
Data: 2012