The more I try to be open-minded and consider multiple political agenda items from a variety of perspectives, the more I become baffled at the inconsiderate and downright defiant nature of some people.
Consider the latest issue regarding student loans as an example.
Unless Congress intervenes, the current student loan rate of 3.4 percent will double to 6.8 percent on July 1. This increase would add an additional $1,000 a year to students’ debt. While $1,000 may seem like a relatively small amount to someone who has steady employment or even a spouse to assist with paying bills, the amount is a lot for a recent graduate who is unemployed or severely underemployed.
To give you a little perspective, the student loan rate was originally 6.8 percent; however, in 2006 Democrats suggested reducing the rate. The following year, President George W. Bush signed the deal into law with the provision that the original rate would return in 2012.
The cost of college has increased drastically over the years. As a matter of fact, college debt now exceeds that of credit cards or auto loans. Think about it, students (many of whom don’t yet have auto loans or credit cards) are accumulating more debt in their educational pursuit than adults who have been in the workforce for years. So, before these kids truly begin living their lives, they are saddled with debt.
That is a major problem.
Another problem is that rather than renew the 3.4 percent rate, congressional Republicans are more interested in cutting taxes for America’s wealthiest individuals.
Helping the rich while ignoring poor and middle-income students is not the investment in the future we owe tomorrow’s generation. We are always stressing the importance of a quality education to youth. And many of us continuously dangle the “college carrot” in their faces by saying things like, “study hard so you can go to college,” or “go to college and you will be able to get a good job.” But what type of message do we send these youth if we make the cost of college so expensive? Do you think a kid who comes from a poor family will be overly excited about going to college, yet not being able to afford it, even after he graduates?
I think not.
The rising cost of college debt is discouraging more and more of our young people. They feel that they will be better off getting a job directly out of high school than accumulating more debt while in college and forced to pay it back at a higher rate upon completion.
If more students adopt this mindset (which I strongly believe they will as rates increase), what does that do to America’s global educational standing? How will we compete with other countries?
A solution to this problem would be to continuously encourage students to pursue college by making it more affordable. Lowering the student loan rates is a great start. As a taxpayer who hates increases, I would be more than willing to pay higher taxes if I knew it meant my efforts would lighten the load of one of our future leaders. Perhaps Republicans in the House should adopt this philosophy.
House Democrats have provided their own suggestion for keeping the rate low: eliminating a loophole used by many wealthy employees of S-corporations that allows them to not pay full payroll taxes.
I am sure we will be hearing much more about this student loan debate on the campaign trail, particularly as the July 1 deadline draws closer. I just hope Congress can put partisan politics away and simply do what is fair for most Americans, not a small few. We must stop being loyal to the wealthy and established people of this country, while those who are just beginning life’s journey struggle to get started.
You can email comments to Shannon Williams at shannonw@indyrecorder.com.
