Wednesday, January 17, 2007

6 Reasons Why Today's Halving the Student Loan Rate is a Bad Idea

The Heritage Foundation has a great article on why the legislation scheduled today to be passed is a bad idea.

1) Federal spending on student financial aid is already skyrocketing.
2) Students already have many options for federal grants and low-interest loans.
3) Student aid subsidies are already set to increase much further.
4) Tuition costs rise with financial aid.
5) Lower interest rates will not increase access to college.
6) Most college graduates can afford to repay their student loans.

Rather than providing billions in new federal subsidies, Congress should instead focus on the fundamental problem of college affordability: out-of-control higher education costs. Congress should determine whether ever-increasing federal subsidies for higher education contribute to increasing college costs.