Comments on: The first fight of 2010 http://www.edvoters.org/news/the-first-fight-of-2010 Fri, 02 Jul 2010 10:23:30 +0000 hourly 1 By: Neville http://www.edvoters.org/news/the-first-fight-of-2010/comment-page-1#comment-387 Neville Wed, 23 Dec 2009 15:29:57 +0000 http://www.edvoters.org/?p=304#comment-387 As President Obama himself said in August, “UPS and FedEx are doing just fine…It’s the Post Office that’s always having problems.” SAFRA would make the Department of Education the only source of loans for students. This will drive up costs and build bureaucracies. SAFRA's proposed savings are fictitious. They are based on student loan interest rates that are scheduled to increase from 3.4% to 6.8% in 2012-2013. Are we really to believe that Congress is going to double student's interest rates in three years time? No! But that’s what the current law says, so that’s what the CBO scores. These are savings for SAFRA that will never materialize. SAFRA's costs will ad more to the deficit. SAFRA does nothing to stem the cost of education. Higher Education costs have risen at 4-times the rate of inflation for the past 30 years. Reform student lending ahead of reforming the enormous cost of Higher Education is only treating the symptom, not fixing the problem. There are political agendas at work here and students and taxpayers will be the victims. As President Obama himself said in August, “UPS and FedEx are doing just fine…It’s the Post Office that’s always having problems.”

SAFRA would make the Department of Education the only source of loans for students. This will drive up costs and build bureaucracies.

SAFRA’s proposed savings are fictitious. They are based on student loan interest rates that are scheduled to increase from 3.4% to 6.8% in 2012-2013. Are we really to believe that Congress is going to double student’s interest rates in three years time? No! But that’s what the current law says, so that’s what the CBO scores. These are savings for SAFRA that will never materialize. SAFRA’s costs will ad more to the deficit.

SAFRA does nothing to stem the cost of education. Higher Education costs have risen at 4-times the rate of inflation for the past 30 years. Reform student lending ahead of reforming the enormous cost of Higher Education is only treating the symptom, not fixing the problem.

There are political agendas at work here and students and taxpayers will be the victims.

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