Fixed-rate student loan option may end

[CShine]

For students with loans to pay off, times have never been better. And they may never be this good again. Rates on federal student loans have fallen to around 3 percent -- a 35-year low. Even better, students can lock in those rates, potentially saving thousands of dollars by ensuring their payments won't increase even if interest rates do. But a proposal in Congress could shut down the party. The measure would end the fixed-rate option, making all federal student loans issued after July 2006 subject to variable rates. Repayments would then rise and fall each year in sync with interest rates.

The change -- just one part of the reauthorization of the mammoth Higher Education Act now wending through Congress -- is intended to shift federal subsidies away from those who already have a degree, freeing up money for programs targeted at students who may be struggling to get to college at all.

The proposed change has split both Democrats and Republicans on the House Education and Workforce Committee. Chairman John Boehner, R.-Ohio, and Rep. Rob Andrews, D.-N.J., have introduced different versions, but other members oppose the proposal. Likely Democratic presidential nominee Sen. John Kerry, has also criticized it, saying variable rates would harm students and enrich lenders.

Education groups are also divided. The United States Student Association opposes the idea, but supporters include, along with lenders, the National Association of Student Financial Aid Administrators and College Parents of America.

http://www.chron.com/cs/CDA/ssistory.mpl/nation/2613104

[w4rma]

1. Another tax on folks who aren't wealthy.

And another step in trying to entrench inherited/investment wealth over folks who work.

[colonel odis]

2. more evidence that certain classes of people believe

the classes under them don't need to be educated.

makes 'em too uppity. besides, when they start thinking they can have what the rich man has, that just stirs up trouble.

bastards.