If the interest rate, on these loans
stays at 6.8%, the increase in revenue after ten years would net in £184
billion dollars. So basically according to press releases, Congress failed to
come up with a new plan and missed their July 1st deadline. Congress came up
with a plan previously; however it failed to address an expense of £6 billion
dollars and the president vetoed it. Looking at the current student debt
figures, the average student loan debt is at £27K and with latest calculations
there are 7 million new students, and many of them would be affected by this
increase in interest. Totaling up the amount that will be charged to the loan
based on the new interest rate, an increase of about £5,000 dollars would be
experienced to each student who is awarded these loans.
There were several factors involved
that caused this deadline to be missed, one of which included the President. A
few months ago President Obama vetoed the Bill freezing the interest rates at
3.8% for the next two years. After vetoing the Bill, Obama stated that the
interest rate would have gone to 6.8% after two years anyways, and that the
President wants to see a longer term solution be put in place. With the
previous Bill passed by a Republican majority, the Democrats hadn't been seeing
eye to eye with them, and the Democratic side of the house was looking for a
longer term solution as well. Luckily for all of us American People, the
President is a Democrat, sharing the same views as the democrats in congress,
who unfortunately didn't have enough weight to cause any influence on this
previously passed bill. So the president simply vetoed this Bill passed by
congress and forced them to come up with another plan. Interestingly enough had
this Bill been passed by congress as well as the president, the cost associated
to freezing the interest rate at 3.8% would have been around £50 billion
dollars.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น