A year ago, nine months ago, we were told that the House Republicans and Democrats were working diligently to reduce a scheduled doubling of the student loan interest rate. You remember this discussion?
The student loan interest rate, because of prior legislation, was scheduled to double this summer, to go from somewhere around 3% to 6.8%. But we were told that this wasn’t going to hold. Obviously Republicans and Democrats were playing a cat-and-mouse game on this. But the upshot of it was that by this summer, that legislation would be rewritten and the interest rate would stay the same.
The argument, if you recall, centered around the usual Washington budget talk about how there was gonna be a “cut” in the student loan rate, when there wasn’t going to be a cut in the student loan rate at all. All that was gonna happen was it was gonna remain the same, 3.4%. It was scheduled to go to 6.8% — and it was the Democrats who wrote that in, by the way. It was Democrat legislation that doubled the student loan interest rate from 3.4% to 6.8%.
The Republicans came along and… I forget the exact wording on this and what the argument centered over. It centered over whether the rate was indeed gonna be held steady. I think the Democrats wanted to argue they were gonna cut it, and the Republicans wanted it to remain the same or whatever. The bottom line is that the student loan rate is going to double. It’s gonna go from 3.4% to 6.8%, and here’s the reason why: Congress has figured out they need that additional money to spend on Obamacare.
I have two stories. The first story is from a relatively new website called Campus Reform. “The Affordable Care Act is set to cost students enrolled in the government’s loan program $8.7 billion in extra interest over the next decade according to a report published by the CBO.” By the way, I got a couple or three stories in the Stack today about how health care costs are just skyrocketing.
There was no way any cost associated with Obamacare’s coming down. Zilch, zero, nada. It’s all going up. Now we’re starting to get the truth, since there’s nothing that can be done about it now. One of these stories involves the student loan program. The Affordable Care Act, Obamacare… By the way, have you noticed that in the Drive-By Media they’re referring to it as “Obamacare” less and less now, and as the “Affordable Care Act” more and more?
That’s because there’s nothing about it that’s affordable, and they don’t want any negatives to attach to Obama so his name is coming off of it in terms of how it’s used in the media, and the Affordable Care Act is what it’s being called, which is what it is. That’s its official legislative title but it’s bogus because nothing about it is “affordable.” Just to repeat for you: Obamacare is set to cost students enrolled in the government’s loan program, student loan program, $8.7 billion in extra interest over the next 10 years.
And this is from the CBO, now. If the savings were kept inside the loan program instead of transferred to Obamacare, they could allow Department of Education to lower student interest rates to 5.3%. The nearly $9 billion in increased student loan debt is being used to pay for Obamacare, and it is derived from $106 billion the government says it will save by administering student loans in house.