Should Taxpayers Pay the Bill for Low Interest Student Loans?

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The following article from the Huffington Post finds many college students in a state of outrage over the doubling of the interest rate on their government backed student loan. Tyler Dowden apparently thinks USA taxpayers care whether he can move into a house immediately after he graduates. Here is the skinny Tyler: Either you pay for the additional interest rate increase OR the United States taxpayers foot the bill. How about you ask your parents for financial assistance, rather than force parents other than yours to pay the bill? Are you really proud of the fact that you need to borrow money from Uncle Sam in order to be “successful” as you put it?

The fact that low income families can not afford to send their kids to college should not be the responsibility of accountable financially responsible Americans. Income inequality will always exist. Don’t expect handouts and then bitch when you actually have to pay for the service you are using!

 

Millions of college students could be in for a shock this summer when the interest rate on a popular federally subsidized student loan doubles unless Congress acts.

College students on Tuesday delivered more than 130,000 letters to congressional leaders asking them to stop rates from increasing from 3.4 to 6.8 percent. The rate hike affects new subsidized Stafford loans, which are issued to low and middle income undergraduates. They hope to raise enough awareness to get Congress to stop it.

“I will be put back into buying a house and saving up for my expenses later on in life, and life as we know, is very unexpected. Adding that variable(do you mean the variable that forces people who work to subsidize people who don’t work or pay back their student loans?) definitely limits my ability to be successful,” said Tyler Dowden, 18, a freshman at Northern Arizona University who spoke at a press conference outside the Capitol before the letters were delivered in boxes with “Congress: Don’t Double Student-Debt Rates” printed on the outside.

Dowden said he anticipates graduating with $25,000 in debt, but if the rate increases, he expects to add about $3,500 to that tally. He’s studying to be a mental health therapist.

President Barack Obama frequently tells crowds it’s important for Congress to stop the hike because one of the most daunting challenges after high school graduation is affording college. His administration has said keeping the rate low would help 7.4 million borrowers save on average more than a thousand dollars over the life of the loan.

But doing so is estimated to cost billions annually at a time when Congress is gridlocked over budgetary and other issues.

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