A Student Loan Compromise
Career College Central Summary:
In an editorial, the Los Angeles Times writes that a tentative deal in the Senate on interest rates is “a welcome reminder that lawmakers can reach bipartisan deals on politically polarized issues, and that they can resist the temptation to avoid hard choices by relying on expensive stopgap fixes.”
The editorial notes that under the currently Washington winds up either profiting from student borrowers or losing money on them, depending on the vagaries of the market for government bonds (and on graduates' ability to find jobs.)
The new deal would set caps that hold the rates well below those likely to be charged by private lenders and give students a much clearer idea about what their borrowing costs will be in the future.
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