In March Congress didn’t vote in a proposal to indefinitely keep student loan interest rates at low and affordable rates. Although a fixed rate of 6.8% was established six years ago, interest rates have gradually been lowered to 3.4% in recent years. With no new mandates on file US interest rates raised back up to their ’06 standards which pushed many students into a riot. Regardless congress did hardly anything to help financially strapped students.
Congressman Dick Durbin (Dem, IL) managed discussions between Washington Republicans and Democrats to arrive at a copasetic solution. “We understand that it’s more than the interest rate that’s causing a problem,” the Senator said. “Let’s give the students and families the help they need today, but let’s not stop on the issue.” Officials in both parties tried to both lower the overall expense of college education while at the same time lowering loan fees and lowering the profits collected by the US government on student loans. The Dallas News offers the complete report.
The recent political fighting has left students completely unrepresented, stressed and scared about their educational investment. In New York City a historically tuition free university (you read that right, FREE) had to finally begin charging fees to overcome hard financial circumstances. The Cooper Union for the Advancement of Science and Art has been tuition free to students since the beginning in 1859. College President Jamshed Bharucha has been forced by circumstance to appeal to the Trustees who voted to begin charging tuition in the Fall 2014 semester. This led students to schedule a protest with the goal of causing Bharucha to step down as college president. After 65 days of protesting the students and board of trustees reached a resolution which will add a student member to the Board of Trustees.
Moving from East coast to West coast, the state congress in OR passed a proposition last July to look into a “Pay It Forward, Pay It Back” (PIF) plan. This type of financial arrangement would allow students attending public colleges in Oregon to attend college for free, however students need to agree to return up to three percent of their annual salaries back to the State of Oregon for the first half of their careers. Will this revolutionary solution work? Only time will tell. Although with tuition nationally increasing 1120% since the 1970s its clear something has to be done.
College students across America are taking matters into their own hands. Instead of normal colleges and universities, many are electing to get specific education from vocational and trade schools. The Stenotype Institute in Florida, for instance, educates students who wish to serve as court stenographers or have a career in closed captioned television. Similar to many institutions of their kind they provide both in-class and Internet learning programs. The simplicity of the schedule, quicker education time and lower cost is a large appeal for students looking at increased interest rates on loans.
How will this effect education? No one knows for sure. On the one hand the US government expects to get a good return on their investment. On the other hand the return is realized in the economic production and steadiness of the citizens versus a high interest rate. If countries like England can offer completely free higher learning to its citizens (and at the same time offer free national healthcare) the US can invest a few million fewer weapons and invest back into its young people whose shoulders the economy of tomorrow rests.