WASHINGTON D.C.--After cutting Federal spending on student loans by $12 Billion to pay for the black hole that is Iraq, President Bush and top GOP members have vowed to oppose this bill. Without a trace of irony, they're going to say that it will "bloat an already huge deficit"--created by the President and the late GOP-majority. This is a good bill, and it ends favoritism for lenders who get a free-pass and subsidies on the loans. It has been a no-risk deal, funnelling money from we the people. The risks and costs have been shouldered by student borrowers and the government (taxpayers, meaning all of us).
Banks will also have to pay the lending-fees for processing the loans. I know, the tears are welling-up in my eyes too. I'm still impressed, but let's see how the Senate treats this bill. We're watching. If you don't keep delivering a better society, we'll replace you with other Democratic candidates. This is my answer to those who feel they have no-choice within a two-party system--it's all we've got now, and we can keep shooting-down the bad-ones with our votes (or lack thereof). This is a great rollback of the Bush agenda, it's worth celebrating: interest-rates on student loans begun in 2008 will be halved!
HR 5: http://www.govtrack.us/congress/billtext.xpd?bill=h110-5
Obviously you don't understand the full details of this bill and it's additions (Sunshine Act & Star Act). Rightfully so, since its sugar coded with, "It's going to lower your student loan interest rates"!Yes, loan rates will drop but .68% every year for the next 5 yrs, it's not an instant drop and it's ONLY on subsidized loans. Most student loans are unsubsidized loans which will not be reduced at all. Also, loan rates are subjected to increase again once the 5yr term is over, just in time for those new graduates to become responsible for the interest on these loans. Additionally, increasing the fees to private lenders will force a lot of these lenders out of the student loan industry, minimizing borrowers choices and reducing incentives only private lenders give to borrowers. The government is trying to monopolize the industry with this bill and it's additions. THESE BILLS ARE BAD NEWS FOR STUDENT LOAN BORROWERS!I advise doing your online research, you'll be shocked at all the hidden things these bills are going to do student loan borrowers.
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