Wednesday, November 26, 2014
YOLO COUNTY NEWS
99 CENTS

Set student-loan interest rates with common sense

By
From page A12 | July 14, 2013 |

The issue: Keep in mind that these are investments in higher education, and our future

While the Senate missed a July 1 deadline to prevent interest rates on certain student loans from doubling to 6.8 percent, it continues to negotiate a solution. But it shouldn’t compromise by incorporating the House of Representatives’ proposed market-based approach to setting rates.

IF INVESTMENTS in higher education have an intrinsic value, the proposed House bill is short-sighted. If the intent is to subsidize the costs of education for those who can’t afford it, the proper rate of interest should be well below market rates, should be set by Congress and should be a welcome cost to society.

The House-passed bill would peg interest rates at 2.5 percent above a variable rate, determined each year by the yield on 10-year Treasury notes. The Congressional Budget Office estimates those rates would rise to 7.7 percent within the next 10 years.

President Barack Obama also has suggested pegging interest rates to a 10-year Treasury note but having them fixed, not variable, for the term of the loan. He would cap payments at 10 percent of a borrower’s income. The administration has urged Congress to make any proposal retroactive to July 1.

One Senate proposal, backed by Tennessee Republican Lamar Alexander and others, would set interest rates at the Treasury note rate plus 1.85 percent. Perhaps the best of the various Senate proposals, by New York Democrat Kirsten Gillibrand, would set interest rates at 4 percent (and would permit students and graduates with debt at a higher interest rate to refinance at that rate). That would be a real investment in students and would pay dividends when those students graduate and start paying income taxes.

A Senate proposal that failed to pass a procedural vote earlier this week simply would have extended the 3.4 percent rate for the 7 million students with subsidized Stafford loans for another year, while keeping the issue in the headlines for partisan sniping.

WHAT’S LACKING in all of these proposals are the common-sense solutions recommended by credit counselors, consumer advocates and students drowning in $1 trillion of existing student debt.

That would include increased funding for outright grants to talented students; loan forgiveness after a period of years; permitting student loan debt to be discharged in bankruptcy; and limiting or ending lending to students with mediocre high school records who are unlikely to graduate.

Comments

comments

.

News

Fremont Weir parking lot remains closed

By Elizabeth Case | From Page: A1

 
Occupy movement settles in at UC Davis

By Tanya Perez | From Page: A1 | Gallery

Time to give thanks for nature’s beauty

By Enterprise staff | From Page: A1 | Gallery

 
Food fight … in a good way

By Tanya Perez | From Page: A1 | Gallery

Guard reinforcements contain damage in Ferguson

By The Associated Press | From Page: A2 | Gallery

 
Weather affecting Thanksgiving travelers

By The Associated Press | From Page: A2 | Gallery

 
Second cat-hoarding suspect arrested

By Lauren Keene | From Page: A2

LCI marks 50 years with special service

By Enterprise staff | From Page: A3

 
Pedal around Davis on weekly bike ride

By Enterprise staff | From Page: A3

Happy Thanksgiving from The Enterprise

By Enterprise staff | From Page: A3

 
Year-end films to see, or not, on KDRT

By Enterprise staff | From Page: A3 | Gallery

 
Girls who volunteer may apply for grant

By Enterprise staff | From Page: A4

Round up at the registers for Davis schools

By Enterprise staff | From Page: A4

 
Davis Community Gift Project brightens holidays for children

By Anne Ternus-Bellamy | From Page: A4

Speaker proposes changes in humanities doctorate

By Special to The Enterprise | From Page: A4 | Gallery

 
Senior Center hosts holiday sing-along

By Enterprise staff | From Page: A4

Sutter sponsors qigong for holiday de-stress

By Enterprise staff | From Page: A4

 
Learn to use Skype at Connections Café

By Enterprise staff | From Page: A4

Boy Scouts start Christmas tree sales on Friday

By Enterprise staff | From Page: A5

 
Volunteers needed to grow plants for habitat restoration

By Special to The Enterprise | From Page: A5 | Gallery

Rainbow City community meeting set Dec. 1

By Special to The Enterprise | From Page: A12

 
.

Forum

She wants more from him

By Creators Syndicate | From Page: B5

 
Tom Meyer cartoon

By Debbie Davis | From Page: A6

Musings in the wake of Ferguson decision

By Special to The Enterprise | From Page: A6

 
Rich Rifkin: Is it time to be a bear or a bull?

By Rich Rifkin | From Page: A6

Planting love at new home

By Letters to the Editor | From Page: A6

 
Innovation parks comparison

By Letters to the Editor | From Page: A6

.

Sports

No excuses, but there’s hope for UCD after 2-9 season

By Bruce Gallaudet | From Page: B1

 
Joseph, Manzanares lead 10 All-Big Sky Aggie picks

By Bruce Gallaudet | From Page: B1 | Gallery

DHS wrestling is not just for boys

By Evan Ream | From Page: B1 | Gallery

 
Let’s not lose another good DHS coach

By Chris Saur | From Page: B1

Blue Devils prepare for a new season on the mat

By Evan Ream | From Page: B1 | Gallery

 
Davis Little League offers early sign-up discounts

By Enterprise staff | From Page: B2

 
Kings get past Pelicans

By The Associated Press | From Page: B6

.

Features

Salute to non-steamed broccoli

By Dan Kennedy | From Page: A7 | Gallery

 
.

Arts

It really is ‘The Best Christmas Pageant Ever’

By Debra DeAngelo | From Page: A11 | Gallery

 
.

Business

.

Obituaries

Death notice: Buddy Ralph Mills

By Special to The Enterprise | From Page: A4

 
Elzyne Thompson

By Special to The Enterprise | From Page: A4

.

Comics

Comics: Wednesday, November 26, 2014

By Creator | From Page: A9

 
.

Ready, Set, Shop!

Shop locally: You can have your pie and eat it too

By Enterprise staff | From Page: RSS1

Santa’s little helper: secrets to happy holiday shopping

By San Francisco Chronicle | From Page: RSS2

Make sure it gets there: deadlines for shopping and shipping

By The Associated Press | From Page: RSS2

Downtown lights up at holiday open house

By Enterprise staff | From Page: RSS3

Full of warm wishes and over-sharing, the holiday card lives on

By The Associated Press | From Page: RSS4

Shop smart: Protect your wallet and your identity this shopping season

By Special to The Enterprise | From Page: RSS5

Woodland celebrates the holidays downtown

By Special to The Enterprise | From Page: RSS5