Student loans interest rates double in July

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Democrats in the Senate and Republicans in the House have both proposed plans to prevent the interest rate on student loans from doubling in July. Preventing the hike in interests rates will cost between four and six billion dollars – and Democrats in the Senate propose paying for it by closing what they call the “John Edwards Loophole” that allows some corporations to escape from paying payroll taxes. Republicans in the House propose paying for it by defunding preventative healthcare programs included in Obamcare.

So, these are the two choices: one, closing a corporate tax loophole, or two, cutting off funding to make sure Americans get the healthcare they need. In any other session of Congress – this would be an obvious choice. But with today’s Republican Party that even the Catholic Bishops argue has lost its moral compass, Americans might have to choose between seeing a doctor and going to college in the near future.

Thom Hartmann Administrator's picture
Thom Hartmann A...
Dec. 29, 2009 9:59 am


In light of the disturbing revelations in "Inside Job" the Matt Damon narrated documentary about the banking collapse, revealing the collusion among the banks, regulators, grading agencies politicians and university deans, Harvard and Princeton, to name a couple featured, it's time to look at our universities and their corporate ties. Thom's post dealt only with how to pay for super increased tuitions, not why they are increasing so dramatically. Like the health insurance business, education is but another means to wealth. The American dream redefined.

Choco's picture
Jul. 31, 2007 3:01 pm

A few comments from OCCUPY STUDENT DEBT

Becoming a Lawyer was the Worst Mistake of My Life

"After attending community college to earn my AA, going to in-state schools for my BA and JD, my starting balance was approximately $180,000 when my payments came due. I had private loans totaling $50k that will wind up costing me at least $150k to pay back. And, of course, this doesn’t include the federal loans.

I was lucky enough to find a job upon graduation working for a tiny firm, but I am paid approximately $30,000 per year, with zero benefits. I am anticipating paying about $500,000 toward my education over my lifetime, never owning a house, never owning a decent car, and possibly not having children. All because I came from a lower-middle class family and a mentally ill mother that literally could not help me with ANY living expenses. I worked at least 20 to 30 hours per week throughout college. Some days, I could just die."

And this one....

"Years ago I went to college to study accounting, and like millions of other Americans I took out loans to pay for it. A few years later I got a temporary job in the accounting department at Bain & Co., and after 6 months of reliable work I was thrilled to be offered a full-time position.

However, just a few weeks after starting in my new position the company fired me because my debt-to-credit ratio was too high. I later learned that 60% of employers now check credit reports, which typically include student debts. How are you supposed to pay off your student debts if you can’t get (or keep) a job BECAUSE of your debts? And what do my student debts have to do with my ability to do a job well anyway?

25 states have debated bills in the last year to restrict this practice, and in a number of these states one company has fought hardest against these efforts: credit reporting company TransUnion.

What’s ironic is that Penny Pritzker, TransUnion’s Chair and part owner, sits on President Obama’s Jobs and Competitiveness Council, which advises the President on putting Americans back to work. How can someone advise on national job creation when her company sells products that may keep qualified people out of work?

Please join me and 25 national civil rights organizations in calling on TransUnion to stop its sale of credit reports to employers. As the only one of the “Big 3” credit reporting companies that’s privately held, TransUnion has the ability to stop this practice overnight.

It was recently announced that in the coming weeks TransUnion will be sold to two private equity companies, including Goldman Sachs. If Penny Pritzker is serious about job creation, she should do what she can to ensure that her company stops this abusive practice before the company is sold.

Click HERE to sign Latoya’s petition

Pls RT: what does my student debt have to do w/ my ability to do my job?
#StopTransUnion #OccupyStudentDebt #UniteHere"

bamboo's picture
Jul. 31, 2007 3:01 pm

The land of the free, home of the brave.

I have a friend in his forties now and he still owes $75,000 in student debts. He's like an indentured servant. Sometimes he makes enough to pay on the interest, sometimes not, sometimes enough to pay down some of the principle.

This is part of how you can create an inverted totalitarian society.

.ren's picture
Apr. 1, 2010 6:50 am

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