Students and their fees or loans have seemingly taken a battering recently on both sides of the Atlantic. Student fee rises in England received a great deal of media attention. However it seems that this interest is shifting to that of the United States, as once again Obama seems to be fighting against Congress.
Obama is currently on a major mission to push through Congress a cap on student loan costs, hoping that in doing so he will reconnect with many of the young voters who were so instrumental in his historic 2008 Presidential victory.
Currently standing at 3.4 percent, there is a possibility that interest may double in July. This will cause the average college graduate in America to lose $1,000 each year in interest rate costs over the life of the loan.
Although it would seem improper to argue for the rise, there are some sound financial and moral arguments from both sides. Many, including leading Republican candidate Mitt Romney, are firmly in favour of the proposal, citing ‘bleak job prospects’ as a reason to ‘extend the current low rate’. It would mean that individuals looking at further education would not be put off and those through and out the other side not so monetarily squeezed. Obama himself at 51 said he only paid off his loans eight years ago and previous to landing arguably the most prestigious job in the world, had struggled to save up for his children’s college educations whilst still trying to pay off for his.
On the other hand, those in favour of the rise see it as an opportunity to pay off the national debt with the higher revenues received. It is unsure how much the money gained would offset the $15 trillion debt, however every change would provide a better future for all involved, not only the college educated.
America would be more financially stable and hopefully able to spend the revenue increase on social benefits that would aid every American and not just the fortunate educated few.
Once again there lies a tough road ahead for Obama. With the US national debt ballooning furiously, it might be time that students take a hit to help carry the burden of a nation.
For those interested in watching Obama slow jam with Jimmy Fallon and The Roots, follow this smart code to the Youtube channel. You could never imagine David Cameron doing such a thing!
