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News & ArtsMonday, April 23, 2012
2012 Romney Supports Low Interest Rates for Student Loans
Posted by Paul Constant on Mon, Apr 23, 2012 at 12:27 PM
Wait, but that actually...makes...sense?
"I fully support the effort to extend the low interest rate on student loans,” Romney said at a joint news conference with Florida Senator Marco Rubio. “There was some concern that that would expire halfway through the year, and I support extending the temporary relief on interest rates for students as a result of student loans, obviously, in part because of the extraordinarily poor conditions in the job market.”
In publicly breaking with his own party, Romney is taking away a potential wedge issue for President Obama's campaign — and giving hope to Democrats that they may find new momentum for the legislation. The deadline for the current, low interest rates to expire is July 1.
This is a pretty big deal. I can't wait to see how Republicans respond to this one.
1
Don't believe it.
This is part of the etch-a-sketch plan.
Now that he's their nominee he has to attract the non-insane voters.
This is part of the etch-a-sketch plan.
Now that he's their nominee he has to attract the non-insane voters.
2
But...isn't this just a giveaway to the profiteers who earn billions foisting student loans onto government? If this isn't coupled with a crackdown on for-profit schools, who suck up most of the student loan money for themselves without providing any actual schooling, how does it make it better? The student loan bubble is bigger and more dangerous than the housing bubble a few years ago.
3
"This is a pretty big deal. I can't wait to see how Republicans respond to this one."
Easy, the usual way: Within a few days Mitt will explain himself since we clearly misunderstood him.
Easy, the usual way: Within a few days Mitt will explain himself since we clearly misunderstood him.
4
Temporary lower interest rates is that big of a deal? Why does anyone participate in this? What a stupid campaign issue, wouldn't more educated workers help America? What the fuck ever
5
@4, while real students do make up a big part of the student loan problem, the crisis is increasingly being driven by for-profit schools, which do not produce more educated workers; they produce big profits for their owners, guaranteed by the government.
6
Yeah, sure. He opposes raising rates in the middle of the year, but at the end (you know, after the election), no problemo!
What a weasel.
What a weasel.
7
@5
Yep. Although this is also a route for real students to get a real education (non-for-profit college) who could not otherwise afford it.
And a real education helps you move up the socio-economic ladder.
What I would like to see is a few million dollars put into tech/science scholarships. But that isn't going to happen with Romney.
Yep. Although this is also a route for real students to get a real education (non-for-profit college) who could not otherwise afford it.
And a real education helps you move up the socio-economic ladder.
What I would like to see is a few million dollars put into tech/science scholarships. But that isn't going to happen with Romney.
8
@7, did you see where the University of Florida is closing their Computer Science department to save $2 million -- which just happens to be the amount they're increasing the football budget by?
10
@8
Yay! I hope that
local-sports-team
is triumphant over
non-local-sports-team
in the next match. I'm sure that you do also. Go
local-sports-team
!
Besides, who needs computer science when you can have college foot ball?
Here's an idea. Subject to improvements, of course:
How about funding a hundred "free ride" scholarships for science/tech/engineering at various colleges/universities around the country? The students get free tuition and books and room and board.
So four years (or sooner) from now we'd have at least 100 new engineers.
Maybe keep adding to that number every year until the government is funding as many engineering scholarships as there are sports scholarships?
Socialism? Maybe.
Keeping the USofA competitive in industry instead of football? Definitely.
Yay! I hope that
local-sports-team
is triumphant over
non-local-sports-team
in the next match. I'm sure that you do also. Go
local-sports-team
!
Besides, who needs computer science when you can have college foot ball?
Here's an idea. Subject to improvements, of course:
How about funding a hundred "free ride" scholarships for science/tech/engineering at various colleges/universities around the country? The students get free tuition and books and room and board.
So four years (or sooner) from now we'd have at least 100 new engineers.
Maybe keep adding to that number every year until the government is funding as many engineering scholarships as there are sports scholarships?
Socialism? Maybe.
Keeping the USofA competitive in industry instead of football? Definitely.
11
Rates on student loans are insanely high right now if this is accurate:
7/2010-6/2012
Stafford 6.80%
PLUS 7.90%
http://www.finaid.org/loans/scripts/inte…
I mean, given that these loans are ultimately backed by the Government there is essentially zero risk to the banks! So they should be lower than either a car loan or a mortgage (which still seems to be heading down towards 3%).
It should be prime rate (or lower given the current Dollar).
7/2010-6/2012
Stafford 6.80%
PLUS 7.90%
http://www.finaid.org/loans/scripts/inte…
I mean, given that these loans are ultimately backed by the Government there is essentially zero risk to the banks! So they should be lower than either a car loan or a mortgage (which still seems to be heading down towards 3%).
It should be prime rate (or lower given the current Dollar).
12
@11 - those aren't insanely high rates. Compared to what they were a few years ago, yes.
When I borrowed in the early 90's, the rates were 8%/10%, which meant that for the first two years, the rate was 8%, after which it jumped to 10% if you didn't consolidate. Of course, just about everyone consolidated at 8%.
The only problem with that is that you can only consolidate (essentially a refi for student loans) once. So when rates dropped in the late 90s, those of us who consolidated at 8% were screwed.
I don't regret my education, and I don't regret choosing a school where I had to borrow over one were I wouldn't have had to make that choice. But there has to be a more just way to handle loans.
When I borrowed in the early 90's, the rates were 8%/10%, which meant that for the first two years, the rate was 8%, after which it jumped to 10% if you didn't consolidate. Of course, just about everyone consolidated at 8%.
The only problem with that is that you can only consolidate (essentially a refi for student loans) once. So when rates dropped in the late 90s, those of us who consolidated at 8% were screwed.
I don't regret my education, and I don't regret choosing a school where I had to borrow over one were I wouldn't have had to make that choice. But there has to be a more just way to handle loans.
13
@12 Yes, but back then interest rates for things like loans for homes and cars and government borrowing were also higher. Interest rates for all of those are currently at or near record lows while student loan rates are way higher. It's a serious racket.
14
My complaint was mostly centered around the idea that this would be some selling point. Some kid in college is going to go "OH BOY A TEMPORARY REDUCTION IN STUDENT LOAN RATES" and finally come around to supporting Romney. Of course it's mostly driven by for-profit schools, I'm sure this clown would do something like how another commenter mentioned Florida cutting sci/tech and increasing sports spending in that he would only lower the interest rates for private loans that the government guarantees. I'm fairly certain Romney was one of the "conservative" voices that criticized Obama for cutting out the banks from a huge chunk of the student loan business saving the government billions of dollars the republicans refused to put even 10% back into education. The fact that this could be some kind of selling point is exactly the problem with politics. He said nothing. He's not going to do anything. He'll say the same thing to a group of people and mean it less at least a dozen more times by the end of the year. He will still do whatever national republicans tell him to do.
15
@13 - I know. Really, my issue is the law that only allows you to consolidate (or, to use the language of other loan instruments, refinance) once. When you do it at a high interest rate, you are screwed when they come down. No other type of loan has that requirement.
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