- Unless Congress acts, interest rates on new subsidized Stafford college loans will soon double.
The Consequences of Bad Policies and Budget Gimmicks
- We are in this hole in part because congressional Democrats and President Obama supported bad policies and budget gimmicks to make Obamacare look cheaper.
- Two years ago, Democrats and President Obama raided student aid at a cost of $9 billion to “pay for” parts of the unpopular Obamacare law.
- In all their politically charged rhetoric, Democrats and President Obama fail to mention that their decision to take billions from student aid two years ago is making it harder to extend the lower rates now.
Interest Rates Should Not Be Allowed to Double
- These interest rates should not be allowed to double, and the cost of preventing the rate hike should be paid for by trimming government spending.
- Senate and House Republicans have introduced a bill that would end the controversial Obamacare slush fund and apply the savings to deficit reduction and a stopgap measure to prevent a rate increase on new Stafford loans.
- Democrats, however, want to compound the problem with more bad policies like permanently raising taxes on businesses and raiding Social Security and Medicare to pay for this fiscal mess that Obamacare made worse.
- The Democrats’ kick-the-can-down-the-road approach will do nothing to extend the solvency of Medicare and Social Security and will make it even harder for small businesses to hire new college graduates.
The Obama Economy: Fewer Jobs, Less Income
- By politicizing this debate, Democrats and President Obama are trying to distract from the real issue facing college students and recent college graduates: fewer job opportunities and less income on account of Obama’s failed economic policies.