Student Loans Weblog

Defense spending is expected to increase over 20 billion dollars again next year. To help pay for the annual 5 - 10% increase in military spend the Republican led congress decided it would be appropriate to cut social programs, including student loans. On average students currently borrow $17,500 for college. The new program will require the average student to take on an additional $5,800 in debt. That will likely put education out of reach for many. The Columbia Spectator reports:

The House deficit reduction bill, which passed by a close vote of 217—215, reduces spending on federal student loan programs by $14.3 billion over the next five years. The Senate bill, which passed by a vote of 52-47, reduces student loan spending by $9.7 billion over the same period. The bills lower subsidies to private lenders that provide student loans and increase borrowing costs for students.

Some are questioning the ethics of the new bill, which allegedly uses income from student loans to pay off war related national debt:

“What is most concerning is that Representatives are willing to use the income generated from student aid to pay the government’s debt,” Nate Walker, executive director of the National Tuition Endowment and TC ’05, said in an e-mail. “Specific to New York, it’s upsetting to think that two of New York’s Representatives—Kuhl and Walsh—are willing to use students’ debt to pay for the government’s deficit. This is unethical.”