The Other I

July 8, 2013

Banking on it

I have a tendency to think something is a good idea for about 24 hours, and then I begin  to think it might not be quite as unassailably brilliant as I first thought.

But 24 hours ago I learned that Senator Elizabeth Warren is submitting a bill to Congress which would make student college loans available for the same rate that the Federal Reserve lends money to banks.  That would reduce the rate students are charged from 6.8% to under 1%.

Every single day through the Federal Reserve, the US government invests in our banks – largest financial institutions in this country.  As the senator says,  “We should be willing to make that same kind of investment in our kids who are trying to get an education.”

This sounds like a brilliant idea to me.  It’s an investment in the nation ‘s future.  It’s not a hand-out or free-bee.  It says “if you have the ability and are willing to work hard, the government is willing to make an investment in your future.”

The only safe guard against potential abuse that I can see would be required would be that colleges and universities do not lower standards in order simply to be a four-year break between graduating from high school and entering the work world.

What do you think?   Read more here.

 

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3 Comments »

  1. I’m not sure what our loan rate is here in Scotland- but the good thing is that you don’t have to pay it back at all until you are earning a decent salary (I can’t remember how much) – so no one is ever crushed by their loan.
    I only had one student loan back in the day. It disappeared into a blackhole that was my overdraft…

    Like

    Comment by sanstorm — July 8, 2013 @ 8:20 pm | Reply

  2. Even the most leftish progressives, some of them, were predicting at her election that she would have to conform to the corrupt practices of the rest of Congress, and would. I think so far they have been caught with much egg on their faces.

    Like

    Comment by pianomusicman — July 8, 2013 @ 9:37 pm | Reply

  3. Two questions I always ask when this subject is raised is how much is the monthly repayment of the loan over the working life of the graduate? How does that equate to the monthly expenditure on a bottle of wine/gallon of gas or weekend break in Blackpool?

    Like

    Comment by lairdglencairn — July 9, 2013 @ 8:16 am | Reply


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