Obama’s Policy towards College Affordability
Recently, President Barack Obama was seen on the Late Night Show with Jimmy Fallon and this is where he was able to participate in one of the funnier features of the show called “slow-jamming the news”. On the late night television show feature, Obama made his thoughts on the rising interest rates on Stafford loans verbal and later on, he used a similar refrain when he gave out his speech at the UNC Chapel Hill.
“Now is not the time to make school more expensive for our young people,” said Obama who related his experiences with student debts / loans as well during the speech at the University.
Since the rates of federally subsidized student loan interests are to set to increase twice as much to 6.8 percent this July, the President visited the University of North Carolina in Chapel Hill to express his desire and efforts in preventing the said increases. Most of Obama’s address that lasted no less than 40 minutes was addressed to the Stafford loan.
“Higher education is the single most important investment you can make in your future,” he told an audience of no less than 8,000 with most of which are standing. “In today’s economy, there is no greater predictor of economic success than a good education,” added Obama.
He also gave praise to the few campuses that try their best to keep their tuition fees as minimal as possible and he said that the federal government should reward these schools with more federal aid.
The current priority of the President is to be able to keep the interest rate of Federal District Loans or Stafford loans at no more than 3.4 percent and on the 1st day onf July, if the Congress ignores this and takes no action, then the rate would automatically increase twice as much to 6.8 percent and the increase would cost the students who have federal loans about $1,000 dollars extra.
Although a lot of people think that this is nothing more than a campaign tactic for the President to establish himself as a regular person and rally his base around a simple concept, there are also those that believe that this is a rare happening when federal action will affect the amount being paid by students for college. Previously, the efforts of the government have been focused on highlighting schools that have the highest rates when it comes to tuition growth and assembling meetings in the White House to come up with ways to stop spending growth but all that it has been in the eyes of most Americans is all talk, no action.
The recent political skirmish on maintaining the 3.4 rate as well as the method of payment for it is nothing but distraction at its finest, unfortunately. This is because only new loans for the 2012-13 academic year and beyond will be impacted by the higher rate and only an approximate of 30% of undergraduates qualify for subsidized Stafford loans for anyone who is affected by this, the increase in monthly payments is estimated to be around no more than $8 dollars which means that the idea that inaction will lead to a doubling of rates for everyone is a stretch.