TELL CONGRESS TO STOP INVESTING IN AMERICA’S FAILURES AND START INVESTING IN AMERICA’S FUTURE!!
Student loan interest rates set to double on July 1st unless Congress acts!!
In the United States, children are taught that the easiest way to achieve the American dream is to stay in school, get good grades, and attend college. They are told that even if they cannot afford to go to pay for higher education, they can still attend by taking advantage of scholarships and federally subsidized student loans. Guidance Counselors, Parents, and Teachers indoctrinate our nation’s young people with the idea that student loan debt is “good debt” and that their education will more than pay for itself. Unfortunately, this may no longer be the case with the cost of college soaring to all time highs. Now, the Federal government wants to add insult to injury by increasing the interest rates on student loans.
Unless Congress acts by July1st, student loan interest rates are set to double jumping from 3.4% to 6.8%. Of course, lawmakers on both sides of the aisle are in agreement that these rates should not increase, but they disagree on how they will pay to keep student loan interest rates static. The price tag looks to be about $5.8 billion for the extension. This is no small amount of money; yet it pales in comparison to the king’s ransom Congress paid for TARP and pays out every year in welfare entitlement programs.
At Conservative-Daily, we pride ourselves for our small government principles and are watchdogs for government waste. But we realize that not all government programs are bad. Federal student loan programs allow many students to attend college who otherwise would not be able to afford today’s high tuition costs. Most of these students will eventually graduate and repay their student loans.
Higher education not only benefits graduates, it also has a positive impact on the economy. According to Money magazine, an individual with a college degree will earn approximately $650,000 more than those without a college diploma over the course of a 40-year career. This means more tax dollars for the government, more money spent on consumer goods, and more money invested to make other businesses grow. Student loans are a boon to private business and the Federal government and are one of the few Federal programs that are actually working.
We must continue to incentivize higher education for our ambitious young people in the way of low interest rates for easy to obtain Federal loans. Eventually, these young citizens will be paying for programs like social security; therefore, it is in everyone’s best interests to make sure they are as successful as possible. That starts with the opportunity to receive a college degree without financially paralyzing one’s future.
Unfortunately, posturing on both sides of the aisle is throwing a monkey wrench into the works. Republicans are dragging their feet because in tough economic times, they don’t want to put the United States further into deficit. Meanwhile, Democrats, desperate for momentum and some semblance of success, are turning college students as political hostages all in an effort to score a few more ill gotten votes on Election Day.
What is truly infuriating is the hypocrisy of the system that currently will punish hard working students who have ambition and a bright future, while rewarding those in the recipient class who refuse to work and are happy being on the government dole.
As mentioned earlier, the price tag to extend the interest rates on student loans is about $5.8 billion. By contrast, in 2011 United States taxpayers forked over $927 billion for welfare alone! That is nearly a trillion dollars to pay people for not working!
Don’t forget about TARP and the other bailout programs that threw away taxpayer money and elongated the recession all without creating a single benefit for middle class Americans. Congress was able to pass legislation granting over $700 billion to banks, brokers, car manufacturers and other failing enterprises; yet now it is balking on investing in America’s young people for a measly (in comparison) $5.8 billion? Wake up, Congress! Stop investing in America’s failures and start investing in America’s future!!
Students have never needed these student loans more than they do today! Since 1985, college tuition rates have skyrocketed almost 500%! If these interest rates soar to 6.8%, students will be forced to pay an extra $1,000 a year on college. This is functionally a new tax for students; all to pay for a recipient class who are happy to get their government checks month after month, year after year. Why should hard work pay for those too lazy to work at all?!
Further, BECAUSE of wasteful government programs like TARP and welfare, the economy has sputtered almost to a stand still. Unemployment amongst teenagers is at a staggering 24% and is at 14% for those ages 20-24. Because of these numbers, many young adults are looking to go back to school for college or advanced degrees. We must continue to incentivize education or America will continue to fall further and further behind other countries. If we throw away money on programs like TARP and welfare, we can CERTAINLY afford to invest in the future of our country.
The interest rates on student loans are set to double on July 1st if Congress does not act. We need your voice telling Congress to take its head out of the sand and do the right thing. It is time to stop using America’s best and brightest as political pawns and start viewing them as engines of economic recovery and prosperity. As goes their future, so goes our country.