President Obama recently went on a two-day bus tour to push a new proposal aimed at creating a college ratings system that evaluates schools on a number of criteria including tuition, graduation rates, debt of graduates and alumni’s earnings.
He claims the ratings system will make college more affordable since federal aid will be allocated based on the results of the ratings.
College affordability is something President Obama has stressed will help restore the middle class since his election into office. The student loan debt epidemic is affecting all age brackets and more than 38 million Americans.
On August 9, the president signed the Bipartisan Student Loan Certainty Act, which ties interest rates on Stafford and PLUS loans to the fluctuations of the 10-year Treasury bond. But while the passage of this new law, which Republicans and Democrats claim will help students, is temporarily lowering interest rates, in five years, it is estimated that interest rates will actually end up being higher than before the bill was signed. According to the Congressional Budget Office, it will make the government an extra $715 million.
The CBO reports that the government is already making an estimated $184 billion from student loans — and this new bill increases the number to a staggering $184,715,000,000.
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