For those of you who “liked” the post: Modern Indentured Servitude: the Student “Loan,” I highly recommend reading Matt Taibbi’s excellent piece in Rolling Stone: Ripping Off Young America: The College-Loan Scandal.
Flash-forward through a few months of brinkmanship and name-calling, and not only is nobody talking about the IRS anymore, but the Republicans and Democrats are snuggled in bed together on the student-loan thing, having hatched a quick-fix plan on July 31st to peg interest rates to Treasury rates, ensuring the rate for undergrads would only rise to 3.86 percent for the coming year.
Though this was just the thinnest of temporary solutions – Congressional Budget Office projections predicted interest rates on undergraduate loans under the new plan would still rise as high as 7.25 percent within five years, while graduate loans could reach an even more ridiculous 8.8 percent – the jobholders on Capitol Hill couldn’t stop congratulating themselves for their “rare” “feat” of bipartisan cooperation. “This proves Washington can work,” clucked House Republican Luke Messer of Indiana, in a typically autoerotic assessment of the work done by Beltway pols like himself who were now freed up for their August vacations.
Student loans remain a barely discussed issue, yet not talking about–and FIXING this–continues indentured servitude, puts our economy at rick. Not only can/will/already ruined many people’s personal finances, but will also deeply hurt the health of a recovering economy if the status quo continues.