In 2011 college students took out $112 BILLION in college loans, doubling the amount taken out just a decade ago. To combat the over-bearing debt congress had frozen the interest rates on student loans at 3.4%, but that freeze is set to expire this July, doubling the interest rates of an estimated seven million students.
The Democrats presented a Bill in the Senate on May 8th that would keep those interest rates frozen by raising Social Security and Medicare payroll taxes on high-earners like stockholders of S Corporations who classify their pay as dividends, not cash income - essentially cutting their tax rate in half.
Sixty votes were needed to begin the debate on the Bill, but without a SINGLE Republican voting for it, including Wisconsin's own Millionaire Senator Ron Johnson, it was dead upon arrival and the interest rates will double this Summer.
"So what?" You ask... well, Americans now owe over one TRILLION dollars in student loan debt - a debt that has surpassed credit card debt for the first time in our nation's history. And do Republicans care? Hell no - they would rather protect the booming bank accounts of wealthy stockholders than the measly checking accounts of college students.
Senate Majority Leader Harry Reid said that this vote sends the message to Americans that "Republicans would rather protect wealthy tax-dodgers" than struggling students. In agreement, the White House released a statement saying, "It is extremely disappointing that Republicans in the Senate today voted to ask millions of students to pay an average of $1,000 each in order to protect a loophole that allows millionaires to dodge payroll taxes."
Senator Ron Johnson (Tea-Bagger Party) was a speaker this weekend at the Wisconsin Republican Convention where the touted Scott Walker and asked people to vote for him in his recall election. We all know Walker and Johnson are cut from the same slimy mold that was forged by ALEC and that these guys have one thing in mind - CUT TAXES.
Okay, Walker's budget did cut my taxes...by a whopping $29. But the same narrow-minded agenda that cut my property taxes just produced a $2,000 college loan interest burden onto my kids. I have two children who I assume will go to college, so that extra $2,000 the GOP just gave snatched came from their pockets (and yours kids' pockets too) then promptly placed it right into the hands of rich stockholders - who obviously need it more than our children, right?
The problem here is that stockholders don't create jobs - never have, never will...They just eat up the profits of someone else's labor, claim a measly 15% on their "earnings" and let the interest collect on some off-shore account, denying Uncle Sam his fair share.
So to me it is obvious that guys like Scott Walker and Ron Johnson (who relied on low-interest government loans to produce his millions) care a hell of a lot more about the interests of the uber-wealthy than the uber-average.
And the chances are that about 99% of you reading this blog just got screwed by the GOP in same rear-ended way that my family did, but only about half of you will actually take a stand and vote against greed by recalling corporate puppet and Hair Club For Men candidate, Scott Walker.
To be fair, the GOP did submit a Bill in the House to keep the loan rates frozen, but their plan paid for it by taking $ directly from the "Affordable Care Act" that allows college students to stay on their parent's insurance until the age of 27 - in essence robbing Peter to pay well, Peter...?!?!?!?!
Scott and Ron - you can have my $29 in property taxes back if you re-invest it in education for my children, because unlike you selfish bastards - I care more about my kids' future than my personal checking account.
Meanwhile a producer will be covering the brunt of your children's education. With the liberal institutions inability to control their skyrocketing costs who cares. The rich pay for my kids to be brainwashed into Obama soldiers. The largest reason this is an issue is because of the unbelievable high recent college graduate unemployment rate. They are unable to pay back the loans. Which is funny and ironic and makes me chuckle. Hope and Change sounded good when walking around campus. It didn't really relate to any in their pocketbook when they graduated.
My personal belief is that education is the cornerstone of our success as a nation. Not everyone CAN afford to go to college, but despite what many see as flaws in the tuition system, SHOULD be able to have that opportunity. There is WAY too much nastiness flying back and forth here. Let's work together to help the less fortunate and make our country great. What's wrong with that? United we stand; divided we fall.
Danny Noonan: "I planned to go to law school after I graduated, but it looks like my folks won't have enough money to put me through college." Judge Smails: "Well, the world needs ditch diggers, too." Some of the students in college today are no sharper than the crayons that they write with, and yet the schools take their money and send them into the world with no way of repaying any loans.
As much as some people on this thread would like you believe that today's students are lazy, that generally doesn't turn out to be the case. My own children have lived at home, worked full time and part time and have used student loans to supplement the costs. They have a well defined path into the future and will be making enough to retire the loans they have had to take out. They are not the exception but represent the rock solid kids who are pursuing the "American Dream". We shouldn't be attempting to block their efforts but should be working with them to solve this problem.
Lyle, It sounds like your children did well, but there is a large amount of abuse of the loan system. Just like with credit cards, some college students are irresponsible (as are some other adults), should we give these students interest rate breaks, on credit card debt, or are they being thrown under the bus too?
As far as credit card debt for students, that is entirely a different matter. That is a voluntary debt that has nothing to do with school. Neither of my kids have credit cards and my son, who is now a graduate student in CA, just got a low limit retail card so he could build a credit history. I have no sympathy for young people who go into consumer credit and it's not the same as school debt.
There is a place for those that have achieved college educations and there is a place for those who have not. It would be interesting to find out what you finally wound up doing for a living. Would a college degree have helped or not?
To chime in, I spent seven years in college (between UW-Madison and UW-Milwaukee) and graduated with a BS in biology after a switch in majors. My parents covered my tuition, room and board for the first half; and I covered myself with student loans for the rest. Luckily, I was able to pay them off and am gainfully employed to date. But when I was a freshman at UW-Madison, tuition was $792 a semester. As previously mentioned, I believe everyone deserves a shot at a good education. The system might be flawed for a host of reasons, but instead of bickering about whose fault it is, I prefer to engage on possible solutions.
I'll be honest and state that I have a problem with business schools and think they shouldn't be part of university educational institutions. To me they are more akin to trade school training and for the most part a college degree doesn't help with starting and running a business. MBAs used to mean something, but they've become a dime a dozen and basically pay your money and you'll get your degree.
And like I stated before - I don't know ANYONE in my neighborhood who could cough up $50,000 cash for college tuition. I don't want a hand out - I just don't want to get raked over the coals while the rich get the hand-out!
Where are you getting the idea that the 'rich' are getting the handout? Where are you getting the 'five years of tuition' from? Getting a degree used to take 4 years--has that changed in the 20 years or so since I graduated? If you stretch 4 years of education out to 5 years, that seems to allow more time for part time work without sacrificing academic learning. How long as 'anyone in your neighborhood' been contributing to college savings plans for their kids? You should have around 18 years of savings to come up with that $50k. By my math, that comes to around $2,778 per year or $232 per month--assuming no increases from interest earnings. In reality, it will likely require a contribution of fewer dollars per month. It doesn't seem to be all that unrealistic to expect someone to have $50k to put toward college tuition.
Classic
Was someone asking how this could be a handout to the rich?