President Obama’s new federal college loan changes may seem like salvation for college students, but it will become a burden that we will all have to carry. The new loan overhaul will simplify the federal loan system, a much needed change, but the drastic timeline of when will it be done will cause many people to lose their jobs.
Sallie Mae is one of the biggest federal student loan providers and will have to cut 2,500 workers this year. Can we afford to cut thousands of domestic jobs with things the way they are now?
Increased federal funding encourages colleges to raise their tuition more than anything else. Schools are always looking for more money to expand facilities or just to pay all of their current employees. When the government can help students more, they know they can ask for more. That’s the way it’s always been.
The new 10 percent cap on how much comes out of your salary paired with the debt being dropped after 20 years will give us some extra money for now, but we will be paying for it for years to come. Debt does not disappear; taxes will go up to fill the gap that those who did not pay off their debt will leave.
Many students don’t work and don’t pay taxes, but if you plan on having a job someday, you will learn that we can’t all afford the rising taxes this new program will cause.
Carl Harrison is a mass communication freshman. He can be reached at
