College loans


On the fringes, some for-profit colleges have been guilty of over-promising that its degree will lead to employment. In some cases, at the entry level for a post-high school educationm students have committed to community college classes without having a practical plan to complete them.

Until now, students with government subsidized loans have been paying a 3.4 percent interest rate. That is changing. Without congressional action, it has doubled to 6.8 percent.

Democrats generally want to continue or even reduce the 3.4 percent rate. They point out plenty of lending takes place at 3.4 percent or less. Large corporations and high-net-worth individuals can find money below that rate today; banks earn far less than that from other banks for their short-term unneeded funds.

If a college education leads to a more rewarding life and adds to the country’s economic strength (unemployment among college grads is half the overall rate), shouldn’t funding be put within easy reach?

The contrary view is equally large. Tuition money available at 3.4 percent has encouraged colleges and universities to raise their tuition rates to higher levels than they would have otherwise, and it has encouraged students who likely will not need to apply a college education in the workplace to spend time and money studying for one.



Private colleges, which can negotiate tuition rates on almost a case-by-case basis, are being more generous in their discounts in order to reach their enrollment goals.


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