Let's get one thing straight: No one wants Stafford loan interest rates to increase.
Sentiment: NEGATIVE
It would be helpful if someone would lay out exactly the economic mechanism that gets us from yet lower interest rates to actual economic activity.
We've got to make greedy banks pass on interest rate cuts in full, and we've got to see rents coming down.
And so Fannie Mae produces very strong results for investors in - when interest rates are high and when interest rates are low, in recession and during booms.
If there were not derivatives, there would be no bank loans at all today, because people want to get fixed-rate 30-year loans, but banks don't want to keep 30-year loans on their books.
Every time the U.S. government makes a low-cost loan to someone, it's investing in them.
Poorer students take out larger loans and will have to contribute more to the cost of higher education.
When the time comes to raise rates, I do think there will be some benefits that flow through to savers.
Should that worse scenario materialize, then most probably our propensity to increase interest rates will be weaker.
However, this President sees no problem eliminating funding for Perkins Loans in his budget, even though the cost of tuition is rising and will continue to rise as the administration's policies force inflation.
I strongly support extending current student loan interest rates and increasing the college tuition tax credit for students and their families.