Yes, it’s true: if the Democrats are able to pull it off, the average student loan debt will drop by almost a third, or about $5,600. That means rather than graduating with an average of $17,500 in debt, students will graduate with an average of $11,900 in debt. Still not ideal, but a whole lot better. This article outlines the plan. Banks now charge 6.8% for student loans; the new legislation would cut that in half to 3.4%.
But here’s the real question we all should be asking, courtesy of Senator Ted Kennedy:
Some Democrats, including Sen. Edward Kennedy, D-Mass., the incoming chairman of the Senate Education Committee, say the government could save money by making college loans directly, relying less on private lenders.
That’s my question: Why do we need the banks at all to loan money to some of our most strapped citizens? Why don’t we just let the government do it directly, cut out the profit-taking middle men, and put our hard-earned tax dollars directly into loaning money to students at a much lower interest rate?
Oh yeah, that’s right. The banking lobby.
I think it’s time for the country to stand up and just say no to corporate profit as the ultimate goal for society.