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Letter: Feds to make millions on student loans (i.e. taxes)

To the Editor:

Many parents recently sat alongside their child in the admissions office at their kid’s chosen college. On campus, an hour before, they ate a tuition-subsidized grand luncheon surrounded by millennial students all wearing $10,000 worth of teeth, $100 new old jeans and $2 flip-flops.

After lunch, and with a little queasiness, the parents and their child meandered over to the admissions office. Don’t the flowers look beautiful? The parents felt uneasy surrounded by luxurious oak furniture meant to relax; unknown to them that the furniture was likely paid for with student loans.

Some parents perhaps felt embarrassed because they were unable to save enough money to send their child to college. Trying to save for retirement, upside down mortgages, medical bills and the job market have been tough on the middle-class. With high hopes of their child getting a degree in something, they watched as that precious child signed for a student loan or two and a devastating economic future.

The price of learning is high … too high for most students and too high for most parents. So a few years back the Feds decided to limit the banks from the lending of “insured” money to students for subsidized education. Let’s do away with the middle man the government said. Great we said.

Well guess what? Our federal government has decided to let the one-time capped interest rates climb on student loans. Oh sure, they are currently a little under 4 percent, but the interest rate will surely increase in the years to come due to the federal float.

Our federal government will make billions in interest loaning money to students who will find it almost impossible to pay it back because of overcharging education institutions, high student loan interest rates and a diminishing job market.

Thank you, Congressman John Kline. As lead Republican on the Education and Labor (Workforce) Committee, “no tax” Kline led the extorted bipartisan effort to burden the next generation of young people with federal student loan debt.

Perhaps some future enlighten federal legislation will limit the interest gouging of students.

But, as we all know, a tax is still a tax, whether you call it interest, fee or whatever. It is almost impossible to reverse.

Bruce Yernberg

Red Wing