Obama’s Crushing Student Debt Repayment Scam
The Department of Education recently enacted new rules for Income-Based Repayment (IBR) of student loans. The hallmark of this “reform,” according to the WSWS, is that a small fraction of students will now be able to repay their loans in 20 years instead of 25 and their rates will go down from 15% of their discretionary income to 10%. The change will have no effect on undergraduates and may end up costing more for those who go on to earn graduate degrees if their starting salaries upon graduation are under $33,000 per year.
While tuition has been rising faster than the rate of inflation for the past decade the amount of student aid has been declining. Federal grants dropped 5% over the past year, the first decline in five years. Federal work study fell by 4% to $972 million—the first time it fell below $1 billion in over a decade. The Obama