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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Bread Upon The Water who wrote (187718)	4/27/2012 4:13:05 PM
From: JohnM	Read Replies (2) \| Respond to of 542957

Why doesn't the interest rates on the loans themselves pay for them? I presume that one of the smaller assumptions built in to the federal budget was the higher rate. Perhaps that's required because the law has to be renewed. The lower rate then reduces revenue. Here's a paragraph from the Times today that is interesting in this regard. Mr. Obama has been traversing the country pushing for the continuation of the current rate, which was set by Democrats in 2007 through legislation that temporarily reduced interest rates for the low- and middle-income undergraduates who receive subsidized Stafford loans. The rate went to 3.4 percent from 6.8 percent and is scheduled to revert to the higher figure in July without Congressional intervention. Graduate students with Stafford loans pay the higher rate, as do students with unsubsidized Stafford loans. nytimes.com