Obama signs student loan deal, says job isn't done

[Omaha Steve]

Source: AP-Excite

By JOSH LEDERMAN and PHILIP ELLIOTT

WASHINGTON (AP) - President Barack Obama signed into law Friday a measure restoring lower interest rates for student loans, pledging the hard-fought compromise would be just the first step in a broader, concerted fight to rein in the costs of a college education.

Encircled by lawmakers from both parties in the Oval Office, Obama praised Democrats and Republicans alike for agreeing - finally - on what he called a sensible, reasonable approach to student loans even as he cautioned that "our job is not done."

"Feels good signing bills. I haven't done this in a while," Obama said, alluding to the difficulty he's faced getting Congress, particularly the Republican-controlled House, to approve his legislative priorities, such as gun control and budget deals.

"Hint, hint," he added to laughter.

FULL story at link.


Read more: http://apnews.excite.com/article/20130809/DA82M14O0.html

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President Barack Obama signs the bipartisan bill to cut student loan interest rates, Friday, Aug. 9, 2013, in the Oval Office of the White House in Washington. The bill has been awaiting Obama's signature since earlier this month, when the House gave it final congressional approval after a drawn-out process to reach a compromise in the Senate. The bill links student loan interest rates to the financial markets. It would offer lower rates for most students now, but higher ones down the line if the economy improves as expected. From left are, Charlotte Etier; Central Connecticut State University; Sen. Brian Schatz, D-Hawaii; Sen. Angus King, I-Maine; Senate Majority Whip Richard Durbin of Ill.; Rep. Joe Courtney, D-Conn.; and Rep. John Kline, R-Minn. (AP Photo/Pablo Martinez Monsivais)

[Dustlawyer]

1. Another sign that we have a lot of Republicans who aren't rich b/c R pressure managed to get the

Republicans to get something done! Those idiots in the picture on the Repug side don't WANT to be on stage w/Obama while he signs a bill, any bill!

[msanthrope]

2. 2014--we need a Congress that gives the President more good bills to sign. nt

[Fringe]

4. Isn't that the truth!

People need to get out and vote during the mid term elections. I hate to see a world where republicans are able cause more damage to the poor and middle class than they already do.

[Sunlei]

3. excellent

[Snowfield]

5. Interest rates caps: 8.25% for undergraduates, graduate students 9.5%, parental loans10.5%

Hello even more massive defaults (College default rates higher than grad rates http://www.freep.com/usatoday/article/2480295 )



Sen. Elizabeth Warren’s “Bank on Students Loan Fairness Act"

FAR better

http://webofdebt.wordpress.com/2013/06/14/elizabeth-warrens-qe-for-students-populist-demagoguery-or-economic-breakthrough/

Warren and her co-sponsor John Tierney propose that students be allowed to borrow directly from the government at the same rate that banks get from the Federal Reserve — 0.75 percent. They argue:

Some people say that we can’t afford low interest rates for students. But the federal government offers far lower rates on loans every single day — they just don’t do it for everyone. Right now, a bank can get a loan through the Federal Reserve discount window at a rate of less than one percent. The same big banks that destroyed millions of jobs and broke our economy can borrow at about 0.75 percent, while our students will be paying nine times as much as of July 1.

This is not fair. And it’s not necessary, either. The federal government makes 36 cents on every dollar it lends to students. Just last week, the Congressional Budget Office announced that the government will make $51 billion on the student loans it issued this year — more than the annual profit of any Fortune 500 company, and about five times Google’s yearly earnings. We should not be profiting from students who are drowning in debt while we are giving great deals to big banks.

The archly critical Brookings Institute says the bill “confuses market interest rates on long-term loans (such as the 10-year Treasury rate) with the Federal Reserve’s Discount Window (used to make short-term loans to banks), and does not reflect the administrative costs and default risk that increase the costs of the federal student loan program.”

Those criticisms would be valid if the provider of funds were either a private bank or the American taxpayer; but in this case, it is the U.S. Federal Reserve. Warren and Tierney assert, “For one year, the Federal Reserve would make funds available to the Department of Education to make these loans to our students.” For the Fed, completely different banking rules apply. As “lender of last resort,” it can expand its balance sheet by buying all the assets it likes. The Fed bought over $1 trillion in “toxic” mortgage-backed securities in QE 1, and reportedly turned a profit on them. It could just as easily buy $1 trillion in student debt and refinance it at 0.75%.


snip

http://againstausterity.org/

[Kingofalldems]

6. Kick and Recommend