Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Don't Blame Me, I Voted For Kerry -- Ignore unavailable to you. Want to Upgrade?

To: Rainy_Day_Woman who wrote (14672)	4/14/2004 12:38:59 PM
From: American Spirit	Read Replies (1) \| Respond to of 81568

Kerry Will Save 13 Billion To Help Students * These corporate profits off federal monies are creating much of our deficits, from Halliburton to HMO's to Banks. Time to keep the money in public hands to help people. Kerry seeks end to 'windfall' on loans By Mike Glover, Associated Press Writer, 4/14/2004 BOSTON -- Democratic presidential candidate John Kerry says he would pay for his plan to give a free college education to young students who agree to public service by ending a $13 billion "windfall" that banks earn for making government-backed student loans. ADVERTISEMENT Kerry contends that as many as 500,000 young men and women would be lured into public service by his plan, which he said would reinvigorate the nation's commitment to such service. His plan, to be announced Wednesday at a roundtable in New York City, is aimed at answering questions about how he would pay for his proposals. Joining Kerry in Harlem are Sen. Hillary Rodham Clinton and Rep. Charles Rangel, both New York Democrats. "We are going to bring about the largest increase in domestic national service in our history," Kerry said in remarks prepared for delivery. Kerry is spending the week focusing on the spiraling cost of a college education. One linchpin of his package is a proposal to offer a free college education to young students who agree to a period of public service. He concedes the proposal is expensive -- with a $13 billion pricetag -- but says it can be financed by restructuring the federally guaranteed student loan programs. Congress sets the terms of student loans. The federal government guarantees student loans at an interest rate of 3.4 percent. If bank collections fall below that level, the federal government will make up the difference. With real interest rates higher than that level -- and collection levels relatively high -- banks are essentially guaranteed a profit under the program, Kerry said. "This is a windfall that creates excess profits for the banks," he said. Kerry said he would force banks to bid in an auction for the business of offering student loans, substituting the marketplace for congressional action in setting terms of student loans. Kerry's campaign estimated that 220,000 young people have been priced out of a college education over the last three years. Offering the prospect of a free college education would lure those people back to higher education, he said. Campaign officials said projections showed that 200,000 young people would agree to serve a two-year public service commitment, which would pay for the full cost of a four-year college education. Another 300,000 would perform part-time service to get assistance with tuition costs, the campaign said. © Copyright 2004 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.