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In my last column, I wrote about how the sequester could deeply impact students of all ages—by cutting education jobs, programs like Head Start, food stamps, and limiting financial aid. Well, once again, kids trying to get an education are at risk of being undercut by the federal government.
The interest rate of new federally subsidized Stafford loans will revert to 6.8 percent from 3.4 percent. The rate subsidized loans, which go to low-income households, was supposed to rise to 6.8 percent back in June 2012, but the rate’s expiration was postponed for a year. This year’s extension lasts until June 30, 2013. If Congress does not act to change the rules or extend the loan rate expiration date, an estimated 7.4 million college students will be affected.
Note that each year the date to change the rate is extended, the federal government loses out on about $6 billion in revenue. But students don’t necessarily have to be the ones paying the price. If there would have been more oversight on the financial aid process, the federal government could have prevented a loss of $200 million in federal student aid fraud since 2009.
What’s a good solution? Rather than postponing the expiration again, the House Education and the Workforce Committee argued that Congress should reevaluate their rate-setting process for all government-issued college loans.
FoxNews.com reports that the Department of Education has also been sending out letters to inform Direct PLUS Loan borrowers that their fees are being raised as a direct result of the automatic budget cuts (or the sequester) that happened after the federal government could not come to a fiscal agreement. Fees for loans issued after March 1, 2013, will have an adjusted loan rate fee—from 4.0 percent to 4.204 percent.
Students are taking more and more hits, but at least they’re putting up a fight.
The yoga class I took just before last night’s State of the Union (SOTU) address wiped me out. I fell asleep immediately afterward. Which is good because I had a chance to think overnight about the parts that resonated most with me.
I’ve been tough on the president in the past, disappointed with his timidity and unwillingness to set a big bold agenda.
Gas prices are expected to hit a two-year low this Memorial Day weekend, averaging around $3.66 a gallon, the Christian Science Monitor reports.
Some energy analysts believe prices could continue to drop through the summer months. The falling prices take away a key piece of the GOP’s platform against President Obama – however, the White House has been relatively quiet about the price drop and a recent AP-GfK poll showed the majority of Americans still disapprove of Obama’s handling of gas prices.
Will the dropping gas prices help Obama’s reelection chances – and should the White House work harder to highlight the decrease? Or will voters still be wary of Obama’s economic performance?
As I mentioned in my previous post, I’ve been a harsh critic of Obama’s leadership or lack of it since he took office, not because I supported Clinton (which I did but I got over it), but as someone who understands the responsibilities of a chief executive to create meaning, articulate a vision, and put forth an agenda for people to work from. From the time he was elected until now, his vision kept shrinking rather than expanding and his penchant for appeasing even the unappeasable has been nothing short of maddening.
That unwillingness to put a stake in the agenda ground left the Democrats in Congress adrift. The result has been that even when Obama scored accomplishments such as heath reform, it never felt like a victory. Because it was never clean cut, never a righteous fight.
But I have to say he knocked it out of the ballpark tonight in his State of the Union Address (full text here). His energetic delivery, piquant story telling, and frequent appeals to the highest American values made me remember the Obama I voted for in 2008 and thought had disappeared entirely.
I’ve been critical of the President’s leadership in the past, and wrote this about a previous State of the Union address. But I’m rooting for him to be at his rhetorical and persuasive best tonight, not so much for his re- election prospects as for the good of the country.
Candidate Obama had a large vision during his campaign and it called us to our higher selves. In part his decisive 2008 victory was due to America’s exhaustion with George W. Bush. But a big factor was Obama’s vision and his promises to lead a progressive agenda once elected.
Instead, once elected, he focused on small vision projects and on doing deals rather than articulating the ideals that had propelled him into office. Tonight’s speech gives him a new opportunity– the last such chance he’ll have during this term–to give people that bigger vision and not just to say things that are safe. To come out swinging at the Republicans
Silly question today but I decided to answer it anyway. More to the point, what in your opinion should be the next steps? Who should take leadership?
Arena Asks: Congress is bracing today for the failure of the supercommittee, which will most likely fail to submit paperwork to the Congressional Budget Office by its Monday deadline.
Is this a big hit for Congress, which had a nine percent approval rating in a recent poll? And why was the supercommittee unable to make ends meet?
My Answer: The supercommittee was doomed from the start because the Republicans have less to lose politically by being intractable on revenue. The supercommittee process played right into their hands and the Democrats took the bait…
You know how first they laugh at you, then they try to kill you, then you win? Occupy Wall Street has moved past getting laughed at and is now under attack. Today’s Politico Arena question asked whether OWS has accomplished anything, taking off from a slam by Rep. Peter King (R of course-NY) who charged the movement is “disorganized.” Below is my response to Arena. Enjoy it while playing this video performance art, and do let me know your thoughts:
ARENA ASKS: In a recent interview with Bloomberg Television, House Homeland Security Committee Chairman Peter King (R-N.Y.) had tough criticism for the Occupy Wall Street movement. “I mean, what is their position?” King asked. “They’re mad that other people are making money?
Today, on Halloween no less, the Earth welcomed the baby who tipped world population over the 7 billion mark.
I probably wouldn’t have known much about the topic of world population but for a fluke as I prepared to graduate from the University of Texas Permian Basin the summer of 1974. To my surprise, I was told I needed three more hours of science.
[youtube]http://www.youtube.com/watch?v=sc4HxPxNrZ0&feature=related[/youtube] National Geographic video showing population growth
It had been a long 12-year road for me, what with three children to care for, a five-year stint teaching Head Start, and other detours along the way. Finally, I thought, I’d be done by the end of June.
Once I got the bad news, I looked for the easiest science course I could find, preferably one without the
The Arena Asks: Texas Gov. Rick Perry’s new proposal would let Americans choose between their existing income tax rate or a new flat tax of 20 percent. Will Perry’s flat tax plan restore him to the GOP presidential primary lead? Will his new campaign team help? And what do you make of Perry’s recent birther-curious comments?
Rick Perry might not know how to govern the country but he knows how to win a race by adapting and persisting. The unifying thread connecting these three changes in Perry’s campaign is this: the man is a learner with an almost feral competitiveness that turns obstacles into fuel to propel him to his goal…
I didn’t get around to answering Politico’s question “Will ‘Buffett tax’ fly?” In time for them to publish it. But after a day of hearing the President argue his case, I’m sharing my thoughts with you. Let me know what you think.
Arena Asks: President Barack Obama will release a plan today to cut the federal deficit by $3 trillion over the next decade, drawing half the savings from new tax revenue and sparing Medicare recipients from having to wait longer to collect benefits. Invoking calls by investor Warren Buffett, Obama’s plan would also would prohibit millionaires from paying a lower tax rate than middle-class Americans. Will this populist-sounding proposal win broad backing? Or is it repackaged class warfare that won’t play well in an aspirational society?
My Answer: If Obama had launched this bold Buffet Rule initiative in January 2009, it would have been a slam dunk…