Student Loan Refinance Bill Would Save Me Tens of Thousands of Dollars
“This bill doesn’t make college more affordable, reduce the amount of money students will have to borrow, or do anything about the lack of jobs grads face in the Obama economy,” Senate Minority Leader Mitch McConnell (R-Ky.) said in a statement.
This is obviously wrong, as usual. By reducing my interest rates by more than half of what they are today, I’ll pay significantly less for my education on a per month basis, which carries over to an even bigger effect in the long-term, because of how compound interest works. It absolutely makes college more affordable, because it reduces the cost of education. Simple as that. On top of that, while it doesn’t ‘reduce the amount students will have to borrow’, it does reduce the amount they’ll have to pay in the end, with reduced interest rates.
How would they like it if I claimed that raising taxes wouldn’t effect how much money you earn in your business, but it would effect how much you have to pay every year. – It’s exactly the same thing, and it’s the exact reason you fight tax increases every year. The difference here is simple: you like keeping us in debt. The more debt we’re in, the more money banks will make, and the more money they’ll continue to funnel into your campaigns when you vote the way they want you to, so the cycle will continue.
Republicans will make me and millions of other American’s suffer financial turmoil further simply because some Billionaires don’t want to miss out on a couple million dollars over a few decades. The lack of Republican support means the proposal would be unlikely to garner the 60 votes needed to prevent a filibuster in the Senate or pass the GOP-controlled House of Representatives.
If you value education in this country, and wish to allow the economy to recover further by reducing the financial burden on the working class, and for those who are doing everything they can to further their education and make something of themselves in the American dream… then you will support this bill. Anyone who doesn’t needs to be voted out of office as soon as possible. Every GOP politician who suppresses citizens for the sake of bankers, needs to be removed from government entirely.
Pass this bill, and support struggling graduates like me. Share this post and raise awareness if you care.]]>
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Another government shortcoming… Student loans should be completely privatized. If student debt could still maintain a nondischargeable status even for private lenders there would be no reason that rates could not be roughly that of the prime rate.
No way. Private companies have proven time and time again that they care more about profit than enabling students to succeed and contribute to society and the economy. Any institution that values profit, and will raise rates at any chance they get, isn’t a good candidate for lending to students.
The opposite is true. Student loans should be subsidized and lenses through an organization that has the lowest possible rates. Private lenders don’t even try to compete. They know they don’t have to. – that’s not the nature of a market economy. That’s the nature of a rigged system against students.
This does a bit to rectify that.
A loan should be profitable, isn’t that the entire point in making a loan? By allowing the rates to float with that of prime however it will create competition for the loans in the market which will create competitive rates.
Student loans rates are dictated by the government and are twice that of the prime rate, my mortgage is based on prime and is below 3%.
“By allowing rates to float at…” Stop right there. Private loan rates are 2-3 times that of the loans provided by the Department of Education, and are subject to rate increases for any reason the lender sees fit. This is not a competitive market. It’s a “you’re trapped” market.
This bill is about giving millions of struggling students with over $1.2 trillion of debt a way to reduce the burdens of their loans. It isn’t going to pay anything off for them. It’s not some government buyout. – it’s an interest rate reduction.
If my private lenders would reduce my interest rate when I’ve been making great payments on time and have great credit, I would be fine staying with them.
But the opposite is true. My loan APR is nearly 10% with private, much higher than the DoE.
Any way you cut this, this helps the country, helps the economy, and helps graduates become more contributing parts of society and further fuels their abilities to take investment risks, make jobs, and create new innovations.
The only people it hurts, are big banks. Boo hoo Republicans
The current private loan rates reflect the terms that are allowed them. Like I said before, if the same loan terms were given for private student debt it would be competitive.
This bill should have never came to be simple due to the fact that the rates should have never been allowed at what they are today. Today’s rates are based on a prime rate a decade ago, loan rates should move with prime instead of being set by congress.
I also do not understand how this is a republican or demo issue…Do you truly believe that every republican has ties to some bank and no democrat does?
To the end question, the answer is simple: one party is unanimously supporting it, and one is mostly against it. – the one against it is getting the blame. Simple as that.
Saying this shouldn’t be allowed to happen because it shouldn’t have been needed in the first place, isn’t productive. It isn’t as it should be… That’s the point. There are no prime rate, competitive rate, blah blah. It’s banks keeping rates as high as possible, rather than helping as many people as possible.
One organizational body wants to help people. One wants to profit. – I will always support those looking to help people over profit.
In theory, the private system should be competitive and make the best rates. – in practice today, it isn’t, thus, the need for the bill.
Am I saying your way of thinking is wrong? No. It’s probably right… But the situation in which it is right, isn’t reality. It isn’t as it should be, and thus, the way to fix it isn’t either