The title of a recently released Fox News article is “Students feel burn of sequester cuts in fee hikes on federal loans” (Web-site/URL: http://www.foxnews.com/politics/2013/03/15/students-feel-burn-sequester-cuts-in-fee-hikes-on-federal-loans/).
“Both graduate students and the parents of undergrads have been quietly receiving letters from the federal Department of Education”.
The letters say the fees on their Direct PLUS loans from the government are being raised as a direct result of the automatic budget cuts that kicked in this month (March, 2013) because Congress and the White House COULDN’T come to a fiscal agreement” AS EXPECTED (Web-site/URL: http://www.youtube.com/watch?v=NgnAY_eXYbI). If they could that would be a surprise.
According to “a copy of the letter obtained by FoxNews.com”, “On August 2, 2011, Congress passed the BUDGET CONTROL Act of 2011, which put into place automatic federal budget cuts, known as the ‘sequester‘. While this law does not otherwise change the amount or terms or conditions of your Direct Loan, IT DOES raise loan fees on Direct PLUS loans first disbursed after March 1, 2013. “Specifically, the fee on your loan will increase from 4 percent of your loan amount to 4.204 percent. For example, the fee on a $10,000 PLUS loan will increase by $20.40 from $400 to $420.40″.
According to Kansas resident Russell Schroeder, “who currently has two daughters in college and received the letter”, “The LACK OF action ON BOTH SIDES is AN ATROCITY” obviously. “Everyone TALKS ABOUT bipartisanship, but NO ONE GIVES AN INCH” again obviously. “If I managed our budget like WASHINGTON did, MY FAMILY WOULD BE OUT ON THE STREET”. Schroeder is the latest person who is crazy about THE DEFICIT like REPUBLICANS are now that “Blue Dog” Democrats have been annihilated (most of them anyway). He is also the latest person to be CYNICAL about “Washington” which, of course, is still DYSFUNCTIONAL even with characters like BART STUPAK, BEN NELSON and BLANCHE LINCOLN being gone.
“Schroeder says that even the little increase on an already high loan will make staying within a family budget tough”. “With inflation, this adds up. Five years ago (2008), $25 bought you FOUR bags of groceries. Now, you’re lucky IF it will buy you ONE bag. We are getting into a DESPERATE time. Every PENNY we have to spend on something is PRECIOUS”. OK, so Schroeder must be a POOR person.
Finally, according to Megan McClean, “director of policy and federal relations for the National Association of Student Financial Aid Administrators”, “The cut will come from THE OVERALL pool of funding, so many schools will receive less funding and many of them are going to be given a smaller piece of the pot. Schools are sending out award letters to students saying they have been accepted, but the number will be lower by the time they start. Students are making decisions now with figures that will be less at the start of the next academic year”.
So, STUDENTS are the latest group of people to suffer because POLITICIANS can’t agree on a budget.