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John Kline Won't Listen To Romney On Student Loans

Category: John Kline
Posted: 04/25/12 14:08

by Dave Mindeman

Congressman John Kline, chair of the Education & Labor Committee, who can't find a way to fix NCLB, wants to double rates on student loans.

He's worried about taxpayers...

"We must now choose between allowing interest rates to rise or piling billions of dollars on the back of taxpayers," Kline said in a statement.

So Kline chooses to pile those billions on students as a future personal debt load.

I often hear Kline and his ilk, complaining about how the deficit is placing a debt burden on the next generation. Well, if we don't find an economical alternative to helping them pay for a college education, they will have, not only our debt, but their own as well. And without a job.

Over the course of the Republican "austerity" program, their efforts to keep tax rates lower for millionaires and billionaires has meant cuts to Universities... which has passed those costa along as tuition hikes.

Students are hung up in the perfect storm. Good jobs require education...often advanced education. Universities, absent state and Federal help, are raising tuition. Students are forced into paying for college via loans and now the loan interest is about to double. This storm is brought to you by John Kline.

To add further irony to the situation, Kline is complaining about a program that was originally signed into law by George W. Bush and now is endorsed by current assumed nominee Mitt Romney.

Still Kline thinks he can characterize it this way:

"Bad policy based on lofty campaign promises has put us in an untenable situation," Kline said in a statement.

The actual bad policy is coming from Kline's committee. And the untenable situation is being felt by the students.

Kline doesn't have a clue about the average family. None.

comments (1) permalink
04/25/12 23:49

Help me out here --- these are loans right ?
Not Grants ? Not Giveaway Dollars ? these are LOANS that should be repaid - correct ?

So, if the Federal Reserve says that it does not plan to raise interest rates, why should the US Government ?
By raising the interest rates on Stafford Loans, it will increase the monies that the government will receive ? Chairman Kline and ALL Republicans in the House approved the Ryan Budget which locks in the 6.8 percent interest rate.
The Republicans counted on increasing revenues by increasing the interest rate on Stafford student loans.
Speaker Boehner has now proposed to offset the lost revenues from another source ... according to George Miller (D-CA) who is the ranking minority member of Chairman Kline's Education and Workforce Committee :
"I commend House Republicans for reversing themselves on the pending student loan interest rate hike. But I am deeply disappointed that Republicans propose extracting the price from women and children. To take health care away from middle class and low-income families in order to keep interest rates from rising for middle class and low-income college students is simply wrong. It's robbing Peter to pay Peter. The Republican bill strips away vital funding for breast and cervical cancer screenings for women. It strips funding for increasing child immunization and for screening newborns for things like hearing loss. In other words, the Republican bill will directly hurt women and children."
Not only does the Ryan Budget lock in the higher cost of the Stafford student loan program, it cuts the Pell Grant program.

Second, it should not be lost on voters that Chairman Kline has received lotsa donations from the Profit-side of the Education industry ? if Stafford Loans are increased to 6.8%, it makes them more competitive with the 9 to 10% in the private loan business ? except be warned the terms are significantly different.
Stafford loans are for low income students ... the people who need it. Today's Stafford student loan program has affordable rates--3.4 percent. There is a forbearance period, after a student graduates, of 6 months before payments commence, and no interest accumulates during the time that the student is actually in college. In fact, there is an income-based repayment formula so that no more than 10 percent of your income can be devoted to the repayment of Stafford student loans.
In contrast, the private student loan, interest accumulates from the day the loan is taken out. If you're a freshman at a 4-year university, you accumulate interest for the entire time that you are in college using those loans. There is no forbearance. There is no timeframe in terms of repayment. It is nondischargeable in bankruptcy if a person gets into great financial difficulty.

So who is Chairman Kline looking out for ?

 

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