Education: July 2011 Archives
There's talk of eliminating interest-subsidized student loans and, of course, the education industry is going crazy. You've gotta love this logic:
ubsidized loans, which are awarded based on financial need, make up just under half of all Stafford loans, which are the federal government's largest pool of student loans. Students who borrow the maximum amount of subsidized loans, $23,000, and take six years to graduate would owe $5,000 more by graduation and $9,000 after a 20-year repayment period, said Pauline Abernathy, vice president of the Institute for College Access and Success."We certainly hope this will not be considered," Abernathy said. "It merely is shifting the debt from the federal government to the next generation of Americans."
Um... who do you think is going to be paying the "government" debt, if not the next generation of Americans? What this plan would do is shift the debt burden away from taxpayers and onto the people who actually benefit most from the education: the students. Why to educators hate the idea? Because they won't be able to charge as much for their product if their customers are not subsidized by taxpayers.
