Is This How Democrats Are Planning To Thank Latino Students For Last Years' Turnout? Really, now?
Student loan compromise by Democrats would raise borrowing costs. Yes you read that last sentence correctly. Nope, it's not a gimmick or a joke - this is an actual proposal by Rep. George Miller (D-Calif.), the top Democrat on the House education committee, and Sen. Dick Durbin (D-Ill.), the Senate majority whip. Why because according to their plan the government would generate $184 billion in profit. Do they know how disproportionally this would impact Latino students? They must, if they have done their calculations. So now under Durbin/Miller the USA Inc. is planning to enslave Latino students to a life of debt to get legislators out of a mess they created. 2014 primary & electoral challenges. Anyone? - Axel Caballero, Cuéntame
The vast majority of new federal student loans would cost more under a Democratic proposal being pushed as a compromise to avert an impending student debt deadline, raising questions about lawmakers' commitment to keeping borrowing costs low for students and their families.
Under a plan by Rep. George Miller (D-Calif.), the top Democrat on the House education committee, and Sen. Dick Durbin (D-Ill.), the Senate majority whip, college students and their parents, beginning in 2016, would pay more for about three-quarters of all new federal student loans, compared with what they’d pay under current law, people familiar with the matter said.
The proposal would avert a July 1 deadline for doubling interest rates on some loans. But it would increase the government’s profit off student loans by more than $1 billion over roughly the next decade. The first few years would be cheaper for students, though future students would pay much more.
The nonpartisan Congressional Budget Office estimated this month that the government would generate $184 billion in profit for loans made from this fiscal year through 2023, not including $15 billion in profit the government booked this year from loans made in previous years. The U.S. government has booked nearly $120 billion in profit from student borrowers and their families over the past five fiscal years. Nearly all new loans for higher education are provided by the government.