After rate jump, Senate Democrats push new student-loan plan

MinnPost photo by Devin Henry
A group of Democratic senators, led by Massachusetts Sen. Elizabeth Warren and including Sen. Al Franken, introduced a bill last week to allow borrowers to refinance their student loans to last year’s low 3.9 percent interest rate.

Comments (2)

  1. Submitted by Tom Anderson on 05/14/2014 - 08:25 pm.

    But

    “We believe the rest of America should have a fair shot at an affordable education.” Agreed. What do loan rates have to do with college being affordable?

    “we need to let students refinance their debt the same way that people do on their homes” And who doesn’t refinance their home every year?

    “allow borrowers to refinance their student loans to last year’s low 3.9 percent interest rate” Why shouldn’t we all get to refinance at a lower rate from some past time? In fact, why shouldn’t we be able to get higher past rates on our CDs and savings accounts?

  2. Submitted by John Smith on 05/15/2014 - 12:11 pm.

    It isn’t the interest rates…

    It is the college industrial complex. When you look at how much college costs have increased over the years, doubling and tripling and way outpacing inflation. Then look at how much faculty have been cut, but administrators and levels of bureaucrats added with nice fat six figure salaries that are so far removed from actually teaching kids. Now add in the fact the colleges themselves don’t underwrite their loans, but instead a hose they always know has water, the government.

    So it is no surprise what has happened, rich administrators racking it in on the backs of college students that are taken advantage of. The colleges know they don’t have to control costs cause the kids will just take out more loans. The bartender giving the drink isn’t affiliated with college is they just keep over serving.

    Now add in the fact that politicians won’t allow student loads to be discharged. So if Hamline had to make the loan you think they are going to give $125k to a student getting a degree in historical cultural studies. No cause they know it probably won’t get paid back and if it expired they would be out of money.
    This lowering of interest rates is just a ruse to make it seem like the career politicians are actually doing something, when they are part of the problem.
    As a country we really have to ask are we getting value out of college as a country we should, or are we just preying off of kids?

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