By Seth Maloney | 1 comments
The GOP threw students a bone: an 8.5% interest rate cap.
But they're only 3.4% right now. What gives? That should have read, "threw students under the bus."
House Republicans want to peg student loan interest rates to what the federal government pays to borrow money. Show of hands: who thinks that's responsible? No one? Good. Since the GOP took the House in 2010, GOP extremism has created several crises that have had real impacts on the economy:
The cost of borrowing for the federal government went up by $1.3 billion in 2011 after the debt ceiling crisis. The fight over the debt ceiling also resulted in the country's credit rating being lowered, and overall economic confidence suffered. This makes the House bill a very worrying sign for students looking to borrow money in the future.
Culture of economic showdowns would increase costs for students
Yet, in a move to "help" students, they want to tie Stafford loan interest rates to the cost of borrowing. But wait! Luckily for us, they capped the interest rate at 8.5%, which is two and a half times larger than the 3.4% students pay now. With this plan potentially costing students up to $2,000 more than if rates simply doubled as scheduled, it really looks like the GOP is willing to throw students under the bus. If nothing else, this should be a reason the GOP re-brand isn't going very well.
We already know that we can't trust the GOP with the economy. How can we trust them with our interest rates?
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