8 votes

Wonder what would finally be the "tipping point"? This may be it.

Congress to double student loan interest rates

RT.com
Fri, 28 Jun 2013 20:24 CDT

Seven million college students will see their student loan costs double on Monday, after a group of bipartisan lawmakers failed to agree on a plan to keep interest rates down.

The Senate adjourned for the July 4 recess on Thursday, but failed to keep interest rates on Stafford loans at the current 3.4 percent rate. The federally subsidized loans are set to expire on July 1, after which the interest rate cap will rise to 6.8 percent.

Congress' Joint Economic Committee estimates that the average student will be paying $2,600 more starting July 1. On a $23,000 student loan repaid over 10 years, a student would be paying about $3,000 total interest.

read more http://www.sott.net/article/263450-Congress-to-double-studen...



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I think

you are overestimating the ability for the average college student to put 2 and 2 together. No, most of them will instinctively blame Republicans while a handful will instinctively blame Democrats and/or Obama personally, while many on 'libertarian' websites continue to tell each other "this is it!" and continue to pat each other on the backs for doing absolutely nothing.

I heard a very similar tune sung with the whole 'Obamacare' thing, so excuse me if I'm just a tad cynical. :I

A signature used to be here!

This issue..

is one that the Dems will latch onto and point at the GOP over. A can will be kicked and nothing will change.

The only issue I see changing the country is if govt comes for guns. That issue will meet fierce and violent opposition.

Jussayin...

'Peace is a powerful message.' Ron Paul

TwelveOhOne's picture

Congress rewards bankers

By not doing anything, and allowing the sunset provision to take place. Bankers rejoice; the People suffer.

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What's the default process?

There will be a chunk whose margins are too small to accommodate the increase. The fallout will probably take a month or two.

So long as

The price of beer and beer bongs don't go up too much most won't even notice.

Don't forget ramen noodles!

Is they go from 25 cents to 30 cents apiece, then those poor college kids just might have to cancel their ecksbawks live accounts. Oh, the horror.

;)

A signature used to be here!

When they see their monthly rates go up "out of nowhere"

They will find out why and be very angry because so many are working their asses off to survive as is. What kind of reaction we will see is unknown. We'll see pretty soon.

How about if the banks do it like home loans and...

tack all the interest on at the BEGINNING of the loan. The poor student looks at his balance sheet at the end of the year and finds he owes as much as he did at the beginning.

No amount of "smoke" I know will take that P.O. away.

Nah that won't be it

College students are predominantly trained in public school to accept the cost of college. What will cause the problem is when the loan money dries up one day with no notice.