April 23, 2012
The College Debt issue is heating up. Last week, President Obama argued that interest rates on government-issued student loans should not increase from 3.4% to 6.8% -- as would happen if a rate abatement were allowed to expire this year. See article.
Well, at an event today in Philadelphia with Sen. Marco Rubio, Governor Mitt Romney agreed with President Obama. Governor Romney stated that the poor job market for recent college graduates weighed heavily in his thinking. While one might argue that both are behaving badly here, I do have to wonder if the government wouldnt be making out like bandits with a 6.8% spread on their loan portfolio. Isnt that sort of the reason that the feds kicked out the private lenders they were making too much money?
There have been a number of interesting articles recently that have touched on the college debt problem facing the nation. The Wall Street Journal has an excellent story (and accompanying video) by Sue Shellenbarger describing the effect student loan debt is having on decisions to have a career, get married, and have children.
Thankfully, some schools are responding. As Thomas Lindsay notes in a piece for NRO, Texas A&MSan Antonio announced a plan to offer a four-year bachelors degree in applied arts and sciences in information technology for $10,000. Total not per year.
Finally, the student debt crisis is almost always analyzed in terms of the effects on students. Well, it turns out that many parents are being brutalized by the cost of college as well. This Dear Abby column reveals how one couple depleted their retirement accounts and deferred needed maintenance and repairs to their home.