After months of conflict the Republican party in the House of Representatives finally agreed to some sort of student loan bill. The new piece of legislation does maintain rates at about the 4% level but it does allow the rate to rise in coming years. John Boehner termed the new law part of the “Republican jobs plan” which is a rather unusual manner to describe a law that allegedly deals with the importance of young Americans to attend college. President Obama smiled and said that signing a bill into law was something “I haven’t done” in months. The reality is that Congress bailed out business and it bailed out banks, but it did not bail out students. It is quite possible for student loan rates to rise in coming years. What could have been done? I sent the following idea to our Senator from Missouri.
1. Allow students a choice: they could agree to pay 2% of their salaries over the coming decades until the loan was repaid. This would free thousands of dollars right now for students to purchase goods or even to purchase a house and help get the economy moving ahead.
2.Offer all students at age 18 the above proposition so no one would go into debt.
If only students worked on Wall Street!