When I was growing up in Harlem, college was a remote possibility even for the most fortunate black and Hispanic students. But times have changed for the better, and today's young minority men and women should expect nothing less from themselves than a college degree. Moreover, they should demand nothing less from their country than affordable options for a higher education. Congress must take action to make college accessible for everyone.
On April 25 the total amount of student loan debt in the U.S. topped one trillion dollars. This staggering economic milestone marks a momentous victory for the top 1 percent over two generations of students and families. In 2007, Congress passed the College Cost Reduction and Access Act, which temporarily cut in half interest rates on subsidized student loans. This Act provided temporary relief for American college students, but it is set to expire on July 1, forcing more than seven million American students and parents to pay an average of $1,000 every year in additional interest on federal loans.
My Democratic colleagues and I are working hard to extend this financial relief for the young Americans who most need it. In order to keep interest rates at 3.4 percent, House Democrats have proposed the Stop the Rate Hike Act of 2012, which ends unwarranted tax subsidies to big oil and gas companies. Republicans have different priorities. They are trying to eliminate student aid by proposing that average and low-income American families pay for it out of their health care. The Republican bill slashes funding for breast and cervical cancer screenings for women, and strips funding for child immunization and screening tests for newborns. They want to make Democrats choose between the vital health care needs of Americans and financial assistance for students. It is clear that Republicans are only interested in representing the interests of Big Oil and the wealthiest Americans.
If Republicans allow student loan interest rates to double, they will further impede 900,000 high school graduates from enrolling in college, especially the 300,000 black and Hispanic students who every year leave high school without taking the necessary steps to get the knowledge and skills that college provides. In order to train and mobilize these young Americans, Congress must take steps to eliminate the financial hurdles that make it difficult or impossible to pursue higher education.
Over the next four years, three million American students will leave high school and forgo a world class education that would provide them with more opportunities to succeed. These young men and women, if trained in our colleges and universities, could provide the skills and leadership that our industries sorely need to maximize our economic potential.
For over a century we have boasted the world's largest economy. Today, however, China threatens to surpass us in terms of purchasing power by 2016. The easy explanation of America's waning economic hegemony is that over a billion Chinese are embracing modernization on an unprecedented scale, while our country is still recovering from the economic recession that began under the Bush Administration. I am proud to have co-sponsored the Student Loan Forgiveness and The American College Tax Relief Act to help our students pursue the American Dream without being saddled by debt. While these initiatives can help make college a reality for millions of Americans, we need to do more.
President Barack Obama is touring the nation's college campuses, telling students to demand action from Congress to make college more affordable. He is right: Congress must act now to keep interest rates low on subsidized government loans. This will expand our skilled workforce and help us extend rather than relinquish our economic lead over China. We should take a lesson from the history books and once again invest in our nation's youth.
Follow Rep. Charles Rangel on Twitter: www.twitter.com/cbrangel
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Lauren
TheCollegeHelper.com
I love the idea of bettering yourself by getting into debt. A winning idea!!
Yes, they have different priorities. They would rather use the savings from unwarranted tax subsidies to reduce the deficit and stop the destruction of our children's financial future.
Which is more important? Saving our kids from bankruptcy, or allowing you to give more and more handouts to get votes?
Tax cheats, rent control abusers, campaign fund maniupulators are routinely condemned by you and other Democrat hypocrites . . . when they are Republicans.
When they are Democrats, well, it's best to just sit down and shut up. Right, Charlie?
We wish you would start to lead by example rather than continue to be a symbol for elite hypocrisy and the very embodiment of one-rule-for-us-another-rule-for-the-little-guy self-entitlement.
For people trying to get funding for school (other than debt), there are few options that I know of. Pell grants are great if you can get them, but the maximum annual amount you can receive at the moment is $5,550. There is also Federal Supplemental Educational Opportunity Grants which are rare and harder to qualify for, and the maximum annual amount you can receive at the moment is $4,000.
(this grant info is at http://www.edutrek.com/for-students/sources-of-finacial-aid)
If your family makes great money, but cannot/will not help pay for your schooling, then good luck qualifying. Although, I think there are some hoops you can jump through with the feds that can get your parents income removed as a factor. Anyone know about this? I've heard about it, but I'm not sure how reliable the source was.
All you've touted is that we should give people more access to go deeper into debt and subsidize more students.
Let me know when you actually try to address why College tuition costs have went up faster than energy and health care costs.
Are you being serious right now?
Average salary:$76,766 (6 months of work)
http://money.cnn.com/magazines/moneymag/bestjobs/2006/snapshots/2.html
Susidized loans: these loans (interest rate is 3.4%) are a small percentage of the cost of tuition, my experience was it covers about 20% of the tuition. My children are taking those loans so they have some skin in the game. However, you cannot pay anything but interest while the child is in school...what a rip-off. I would like to be able to start paying the loan immediately but no, I can't. So it builds up compounded interest while the child is in school. Thanks for nothing.
Unsubsidized loans: These have an interest rate of 7.9% with the same issue of compounding interest while the child is in school. Compare this rate to all other loans like car or home loans...this rate is ridiculously high. Again, thanks for nothing.
These loans hang over our children's heads like the Sword of Damocles. With large debts upon graduation, they can't move forward in their lives, like buying a house or starting a business. How can you take on another mortgage when you already have one?
The Federal Government now controls student loans. They can set the interest wherever they want. They are borrowing from the Federal Reserve for the loans...anyone see how much of a ripoff this is?
My personal solution...don't use student loans. I was able to take personal loans at much better interest rates. The Feds are ripping the youth off! Again!
Believe me, I have strong opinions about the higher education bubble. This isn't going to end well.