Administration's Student Loan Push Only Yields $9.50 a Month for Hispanics
The White House is touting the impact of extending the lowered student loan interest rate on Hispanic borrowers. They proudly claim that 986,494 Hispanic students would be affected if the rate returned to 6.8%.
Doug Holtz-Eakin previously took to National Review Online to point out that those impacted by this rate make up a tiny fraction of all student borrowers, when the cost of college needs to be reduced for all Americans.
So how much does this lowered rate save the 986,494 potential Hispanic borrowers of subsidized Stafford loans? Over the course of the loan (on average, 9 years), they’ll save $1,027, which comes out to a mere $9.50 per month. What all Americans need, including Hispanics, is an economy that can support them with jobs and real income growth, not targeted policy to a few people, at under $10 a month.
Holtz-Eakin concludes on National Review Online:
Americans would have a better shot at an affordable college education in an economy that produced jobs and rapidly growing real income. Americans would be better able to afford college if their budgets were less pressured by gasoline, food, and health-insurance premiums. Americans would have a better path to the middle class if their future wasn’t threatened by federal debt already larger than the economy.