Is charging 6.8% interest fair, when education is the cornerstone of a strong society?
Outstanding student loans are approaching 1 Trillion ... $1,000,000,000,000 dollars.
On February 8. 2002 ... George Bush signed Bill S. 1762 to "Fix" the interest rates. This fix has caused Federally subsidized student loans to increase from a variable rate over prime, to a fixed rate of 6.8%. It was a giveaway to the banks, because these loans were Federally subsidized and guaranteed ... NO RISK!
Students from middle class and poor families, in order to secure an education must borrow at rates that are 27 times what the federal government charges banks.
This is a tax on the middle class, made to give tax breaks to the wealthy. This is what class warfare looks like!
As part of the Affordable Care Act, the business of Student Loans was taken away from commercial banks last year.
When the debt to working class, and middle class families hits 1 Trillion, we will be paying the Federal Government $68,000,000,000 per year, every year, give or take a billion, to the Federal government for these loans.
There are some proposing that this debt be forgiven completely as a means of stimulus, there are others that suggest we reduce the interest on this debt, to match what we offer the commercial banks ... 1/4 of 1%.
This simple move is instant relief to those who need it the most. While forgiving the debt would be huge, it doesn't seem likely.
To reduce the interest would put billions of dollars back in the pockets of those just starting out in life, and those parents who are looking at a shaky retirement due to the uncertainty in the economy.
This type of move needs support.
The Obama Administration is looking for answers on a portion of the White House website ... appropriately named "We the People".
A petition is there: petition that could start an effort for the "Save our Students from Poverty Act"!
One must register and login to put a yeah towards a plethora of petitions on the site.
However, this one stands out as being a hard to deny.
Democrats or Republicans in Congress cannot deny that students, and their parents are shouldering a burden that is draining money from the economy.
A huge sum that should be used to start young families!
A huge sum that should not be facing parents who must think about retirement!
A move that will make education both affordable and immediately stimulate the economy.
Please take a look!
150 signatures and this petition will be brought to the forefront, where all who go to the site can give it a nod.
I find it hard to believe, in a time where we bail out those too big to fail, we should not consider reducing the strain on those too small, to overcome.