The article reports some of the details of the Higher Education Act:<\/p>\n
…(The act would) ban private companies from offering federally guaranteed student loans as of this July. Congress has already passed laws in recent years discouraging private lenders<\/a> from making loans without a federal guarantee. But most college financial-aid<\/a> departments still want private companies to originate and service the guaranteed loans. That’s because the alternative\u2014a public option run by the Department of Education\u2014has been distinguished by its Soviet-style customer service<\/strong>.<\/p>\n Unfortunately, the Higher Education Act passed, along with Obamacare.<\/p>\n An article posted at Heritage.org<\/a>\u00a0provides some background on the current flap about the interest on these loans:<\/p>\n After gaining control of Congress in 2007, then-Speaker Nancy Pelosi (D-CA) and Rep. George Miller (D-CA) championed H.R. 2669, legislation that only temporarily phased down interest rates for subsidized Stafford Loans<\/a> made to undergraduate students over four academic years, at which point the rate would revert back to 6.8 percent.\u2026 [E]xtending the 3.4% interest rate on subsidized Stafford Loans made to undergraduate students for one year would cost roughly $6 billion.<\/strong><\/p>\n This current ‘crisis’ was set up!<\/p>\n Heritage further reports:<\/p>\n Debate over interest rate hikes are part of a larger problem with federal involvement and ever-increasing subsidies for higher education. The cost of attending college has increased 439 percent since 1982<\/a> (after adjusting for inflation). Continuing to increase federal subsidies hasn\u2019t helped reduce college costs and has likely exacerbated the problem over the decades.<\/strong><\/p>\n Maybe we should consider the fact that as student loan money has increased, the cost of college has increased. The fact that there has been a 439 percent increase in the cost of attending college\u00a0in thirty-years (even after adjusting for inflation) should tell us something.<\/p>\n <\/strong>\u00a0<\/p>\n
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