OK

This is only a Preview!

You must Publish this diary to make this visible to the public,
or click 'Edit Diary' to make further changes first.

Posting a Diary Entry

Daily Kos welcomes blog articles from readers, known as diaries. The Intro section to a diary should be about three paragraphs long, and is required. The body section is optional, as is the poll, which can have 1 to 15 choices. Descriptive tags are also required to help others find your diary by subject; please don't use "cute" tags.

When you're ready, scroll down below the tags and click Save & Preview. You can edit your diary after it's published by clicking Edit Diary. Polls cannot be edited once they are published.

If this is your first time creating a Diary since the Ajax upgrade, before you enter any text below, please press Ctrl-F5 and then hold down the Shift Key and press your browser's Reload button to refresh its cache with the new script files.

ATTENTION: READ THE RULES.

  1. One diary daily maximum.
  2. Substantive diaries only. If you don't have at least three solid, original paragraphs, you should probably post a comment in an Open Thread.
  3. No repetitive diaries. Take a moment to ensure your topic hasn't been blogged (you can search for Stories and Diaries that already cover this topic), though fresh original analysis is always welcome.
  4. Use the "Body" textbox if your diary entry is longer than three paragraphs.
  5. Any images in your posts must be hosted by an approved image hosting service (one of: imageshack.us, photobucket.com, flickr.com, smugmug.com, allyoucanupload.com, picturetrail.com, mac.com, webshots.com, editgrid.com).
  6. Copying and pasting entire copyrighted works is prohibited. If you do quote something, keep it brief, always provide a link to the original source, and use the <blockquote> tags to clearly identify the quoted material. Violating this rule is grounds for immediate banning.
  7. Be civil. Do not "call out" other users by name in diary titles. Do not use profanity in diary titles. Don't write diaries whose main purpose is to deliberately inflame.
For the complete list of DailyKos diary guidelines, please click here.

Please begin with an informative title:

Once again, federal student loan interest rates are set to double from 3.4 percent to 6.8 percent (on new loans; existing ones wouldn't be affected). Last year's fix wasn't great, and that happened in the pressure of an election year in which President Obama campaigned on the issue. That means this year, with student loan defaults already hitting a new high, students are likely to be really screwed, paying up to $5,000 more interest than they would at the current rate. In our ridiculous political system, the people in power are talking about how much it would cost:
Senate Democrats, led by Sen. Patty Murray, D-Wash., say their budget proposal would permanently keep the student rates low. But their budget document doesn't explicitly cover the $6 billion annual cost. Instead, its committee report included a window for the Senate Health, Education and Pension Committee to pass a student loan-rate fix down the road.

But so far, the money isn't there. And if the committee wants to keep the rates where they are, they will have to find a way to pay for them, either through cuts to programs in the budget or by adding new taxes.

"Spending is measured in numbers, not words," said Jason Delisle, a former Republican staffer on the Senate Budget Committee and now director of the New America Foundation's Federal Budget Project. "The Murray budget does not include funding for any changes to student loans."

Mind you, we're not talking about the government paying students' tuition. We're not talking about free money. We're talking about how much interest students will pay as they repay loans, and as Rep. Peter Welch (D-VT) points out, the government borrows at two percent. In that light, paying 6.8 percent interest is mildly extortionate. So when politicians or pundits or AP reporters ask how the government is going to pay for keeping interest rates at 3.4 percent, they're not talking about laying out new money, they're talking about cutting revenue. Compare the fretting about this revenue coming in from students who need loans to afford college with the talk from Republicans when the question is keeping taxes ridiculously low for billionaires or giant corporations and you'll get a strong reminder that Republicans don't hate all revenue or want to cut everyone's taxes—that's reserved for the powerful.
Intro

You must enter an Intro for your Diary Entry between 300 and 1150 characters long (that's approximately 50-175 words without any html or formatting markup).

Extended (Optional)

Originally posted to Daily Kos Labor on Fri Mar 29, 2013 at 09:03 AM PDT.

Also republished by In Support of Labor and Unions, ClassWarfare Newsletter: WallStreet VS Working Class Global Occupy movement, and Daily Kos.

EMAIL TO A FRIEND X
Your Email has been sent.