Tuesday, August 13, 2013

Save Now, But Pay Through the Nose Later!

Trey Smith

Back on August 5 in the Morning News slot, I shared with readers a Young Turks' report on the hideous "bargain" President Obama had struck with conservatives in Congress in regards to the student loan interest rate. This legislation -- which was signed into law last Friday -- will keep student loan rates relatively low...for now. However if the Wall Street economy improves -- NOT the Main Street economy -- rates will be far higher than they've ever been and students certainly will feel the pain.

At times, it's really hard to remember that Obama is a Democrat! This bill is a fiscal conservative's dream, yet he was one of the champions of it.

While it wouldn't be fair to students either way, Team Obama might be given a tad bit of leeway IF they were making efforts to pump some life into the economy that impacts most people. But they are making no such efforts! So, future students and graduates still face a tough employment market, one that is increasingly predominated by low wage service sector jobs. Combine this with the fact that the cost of higher education continues to climb and what we will wind up with is a huge student loan bubble that will explode eventually.

Of course, when that happens, Obama won't be president anymore. Some other schmuck will get the blame and have to figure out a way out of the mess.

But hey, why worry about that now, right?

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