The Rochester Post Bulletin published an op-ed by Rep. John Kline (R-MN) about the student loan debate. Kline chairs the House Education Committee. Kline wants to privatize the government-backed student loan system so his donors can make even more money.
And when I say donors, I mean the Banksters.
Of course, Kline doesn’t frame it this way:
Last summer, debate about student loans reached a fever pitch thanks to a scheduled increase in the interest rate for subsidized Stafford loans made to undergraduate students. The president began touring college campuses, calling on Congress to prevent the increase that his own party set in motion in 2007.
As I said at the time, no one wanted to see interest rates double — particularly at a time when one out of every two college graduates was struggling to find a full-time job. But we need to move away from a system that allows Washington politicians to use student loan interest rates as bargaining chips, creating uncertainty and confusion for borrowers.
Kline couldn’t care less about the suffering of students. He doesn’t understand that we’re moving in the direction of college becoming a luxury for the well-to-do, he is only concerned about donors making profits and rewarding him with campaign contributions.
But I’ll let Kline continue …
Just like the president’s plan, our legislation will apply a market-based interest rate to all Stafford and PLUS loans, ensuring borrowers will be able to take advantage of today’s low rates. But unlike President Obama’s proposal, the Smarter Solutions for Students Act takes an additional step to protect borrowers against higher interest rates by imposing a fair and reasonable cap. Based on current market conditions, HR 1911 could lead interest rates to drop by as much as 2 percent for millions of Stafford and PLUS loan borrowers this summer.
The first sentence in the above quote is a lie. Obama opposes the Smarter Solutions for Students Act. The SSSA would cap Stafford Loans at 8.5%, more than double today’s cap. Doing nothing this summer and letting loan rates double would be cheaper for students.
Additionally, the legislation maintains students’ ability to consolidate their loans upon graduation and lock in a low fixed interest rate for the life of the loan. And students still can take advantage of existing federal repayment and debt management initiatives, such as the generous income-based repayment programs, numerous loan forgiveness programs and opportunities for deferment or forbearance.
The Smarter Solutions for Students Act is a narrow piece of legislation that will provide a lasting solution to the problem facing the federal student loan program. Unfortunately, some critics would rather kick the can down the road and simply extend the current arbitrary rates at a taxpayer cost of about $8 billion dollars. They want to continue the failed status quo and leave politicians in charge of setting rates.
Considering who Kline is doing this for, the banksters, I don’t trust a word he says on this subject.