Yet again, the Republicans roll back a piece of the 20th century. Congress agreed to freeze student loan rates for a year. At first, I figured, whatever, typical kicking the can down the road. I should have known better.
Even as Congress moves to prevent undergraduate student loan rates from doubling, lawmakers have decided to eliminate two federal subsidies that will increase the cost of higher education.
One would hit the same college students who are benefiting from the interest rate freeze. Though their rates will be only 3.4 percent, they will be responsible for paying that interest as soon as they throw their graduation caps in the air — a change that is expected to cost them more than $2 billion.
Meanwhile, students hoping to earn the advanced degrees that have become mandatory for many white-collar jobs will no longer be eligible for federally subsidized loans. That means graduate students are facing an $18 billion increase in interest rate payments over the next decade, about three times the amount at stake in the debate over undergrad interest rates.
Both measures will take effect Sunday.
Yep, that’s right. No more federally subsidized student loans for graduate students.
But hey, this managed to freeze student loan rates for one whole year! I’m sure that next year at this time, we’ll see a much better deal for students!!!
And once again, thanks to the Democratic Party for standing strong for everyday Americans…..