Student-loan act should be extended
An issue that both President Barack Obama and Republican presidential candidate Mitt Romney actually agree on can only mean two things for America either the Mayans were right or its something that should be seriously considered.
With Congress College Cost Reduction and Access Act, which decreased the interest rate on federal student loans from 6.8 percent to 3.4 percent, set to expire July 1, both class-equality advocate Obama and champion for the private sector Romney have finally found some common ground. Not extending the act could cripple the future generation of college students and workforce beyond repair.
According to The Atlantic, the typical college tuition has tripled over the last 30 years, yet the earnings gap between college graduates and high school graduates has also tripled during the same timeframe, from 75 percent in 1979 to 230 percent in 2003.
This paradox of college costs, as The Atlantic calls it, means that it is now just as expensive to go to college as it is not to go. And when considering that tuition in Florida is set to escalate yet again the State University System sustained a $300 billion funding cut in next years budget loans will have an even bigger presence in Florida students battle against a 9 percent unemployment rate, according to the Tampa Bay Times.
If the act is not renewed, students would watch those loan rates double overnight a difference of about $1,000, according to the Washington Post.
The only hitch in the plan, and the issue giving pause to Congressional action, is the $6 billion it would cost to extend the program for another year, according to the Post. However, its worth noting that the cost could have been almost completely covered by the extra revenue brought in from the Buffett Rule, a tax plan recently defeated by Congress that would place a minimum tax of 30 percent on American millionaires.
There is no easy solution to helping todays college students when 50 percent of recent grads are unemployed or underemployed, as Romney told reporters Monday. Without changes to government spending, this temporary solution to boosting job prospects for students will become a repeated discussion. However, with severe cuts to federal aid programs and 7.4 million students across the U.S. affected by the act, according to the Chicago Tribune, it is necessary to preserving the future of the economy.
Romney and Obama have realized that this is not a party issue and Congress should too. Creating opportunities for future generations is a platform that all allege to work toward, and actually finding a solution to turn words into action would secure votes on either side of the political spectrum.
Get Top Stories Delivered Weekly
From Around the Web
More usforacle News Articles
Recent usforacle News Articles
Discuss This Article
MOST POPULAR USFORACLE
GET TOP STORIES DELIVERED WEEKLY
FOLLOW OUR NEWSPAPER
LATEST USFORACLE NEWS
FROM AROUND THE WEB
- Wellness Travel Is on the Rise
- 3 Steps to Build a Better Nest Egg
- Para los latinos, el Día de las Madres es una...
- Top 4 Signs You Need to Call a Pest Professional
- Another Reason to Choose Chiropractic Care First for Pain...
- Create a Precious Moment for Mom This Mother's Day
- 4 Basic Exercises to Help Older Adults Improve Strength...
- New Drug May Help Control the Spread of Cancer
- Uber to Passengers: Our Drivers May Be Unsafe
- Thermal Imaging Camera Helps Find Hidden Damage in Your Home
COLLEGE PRESS RELEASES
- TD Ameritrade Seeks Applicants for NextGen Financial Planning Scholarships, Grants
- Make it Count: Get the Most out of the End of the Semester!
- FARE's College Food Allergy Program Pilots in a Dozen Schools Nationwide
- HOTSHOT® HOT Canned Coffee gets a Jolt from Kickstarter
- From dating to internships - it's everything you need to know about college: The Her Campus Guide to College Life, Out Now