Mikaela says:
The Onion once again nailed with humor the bottom line on Congress' recent efforts to cut the student loan interest rate.
Georgia Cummings, Systems Analyst
"But the only excitement I have in my life is the cat-and-mouse game I play with my student loan officer."
Jeffrey Cain, Referee
"I can't wait to tell my loan officer that I'll be paying back my loan two weeks earlier than my previously stated goal date of never."
Robert Loehman, Body Piercer
"As this will inevitably entice many to purchase more education than they can afford, please let me know when I can buy one of those fancy educated brains at foreclosure."
What aggravates me about the student loan rate cut is this:
I don't know about you, but I'm on the 30 year payback plan. Basically I have a house mortgage supporting my education to date. Like a little tick sucking my lifeblood every month, the government will take a little from my every paycheck for the rest of my earning career. That's just the way it is. Over the next 30 years, a cut to the interest rate will save me around $4,000. That's $4,000 over the next 30 years, or approximately $11 a month.
Now, maybe this interest rate cut will actually persuade those who might not otherwise consider taking out a loan that it's okay. Somehow, I doubt it. Those who wouldn't consider borrowing when the interest rate is 6% probably won't if the interest rate is 3% either. Some people, bless them, just don't like borrowing money in an official capacity.
From my perspective, student loans are already a blessing. What I'd like to see is the government stop trying to pawn the loans to private banks. Maybe it's not as sinister as it seems, but ... there's something not quite right about it. I prefer to have my loans held by good ole Uncle Sam. As long as my student loan interest rate is lower than the one I could get for a car or at just any ole bank, I'm a happy borrower - for the rest of my life.
I think Congress should focus its efforts and political capital on the real education issues: giving grants and subsidized loans to those who really can't afford college, as well as making sure that public education at all levels prepares students -- particularly minorities whom our current system fails to serve -- to succeed in college. Now that might make a difference.
Congress gets credit for doing something about making education more affordable without actually doing anything to make education more affordable.
I don't know about you, but I'm on the 30 year payback plan. Basically I have a house mortgage supporting my education to date. Like a little tick sucking my lifeblood every month, the government will take a little from my every paycheck for the rest of my earning career. That's just the way it is. Over the next 30 years, a cut to the interest rate will save me around $4,000. That's $4,000 over the next 30 years, or approximately $11 a month.
Now, maybe this interest rate cut will actually persuade those who might not otherwise consider taking out a loan that it's okay. Somehow, I doubt it. Those who wouldn't consider borrowing when the interest rate is 6% probably won't if the interest rate is 3% either. Some people, bless them, just don't like borrowing money in an official capacity.
From my perspective, student loans are already a blessing. What I'd like to see is the government stop trying to pawn the loans to private banks. Maybe it's not as sinister as it seems, but ... there's something not quite right about it. I prefer to have my loans held by good ole Uncle Sam. As long as my student loan interest rate is lower than the one I could get for a car or at just any ole bank, I'm a happy borrower - for the rest of my life.
I think Congress should focus its efforts and political capital on the real education issues: giving grants and subsidized loans to those who really can't afford college, as well as making sure that public education at all levels prepares students -- particularly minorities whom our current system fails to serve -- to succeed in college. Now that might make a difference.
|