...and now the 'Why?'...TheDC: The subsidized interest rate on Stafford student loans doubled Monday, following top Senate Democrats’ rejection of a bipartisan compromise supported by the president.
As the U.S. Senate debated comprehensive immigration reform for days last week, the student loan clock was quietly counting down. Now, with legislators on vacation for Independence Day week, the interest rate for undergraduate student borrowers has automatically increased from 3.4 percent to 6.8 percent.
CampusReform: The Affordable Care Act is set to cost students enrolled in the government’s loan program $8.7 billion in extra interest over the next decade, according to a report published by the non-partisan Congressional Budget Office (CBO).
If savings were kept inside the loan program, instead of transferred to Obamacare...they could allow the Department of Education to lower student interest rates to 5.3 percent from 6.3 percent, according to the CBO.
The nearly $9 billion being used to fund Obamacare is derived from $61 billion the government says it will save by administering student loans in-house.
Now of course, there will invariably be those Democrats who feign protest over the rate hike, after they allowed it mind you, and will fight to cut it. And thus, the majority of young Democratic voters will fall for the rescue routine, once again. Never mind that many of these college kids brought it on themselves by voting for this crap! But don't worry, they'll have someone to blame, likely the Republicans...and they'll probably take it at the rate they're going lately.
Related links: Student Loan Rates to Double Monday
Student Loan Money is Being Siphoned Off Into Obamacare
