Who wants to be the next ASG President?

The government is sticking it to college students once again. Federal loan rates are set to increase July 1, another blow to students across America. President Bush recently signed a bill, the Budget Reconciliation Act of 2006, which will cut $12.7 billion from the federal student loan program. This will increase borrowing limits but will raise interest rates from 5.3 percent to 6.8 percent.

The popular Stafford Loan is a low-interest rate loan offered by the federal government and directly through banks.

Eligibility is determined through the Free Application for Federal Student Aid (FAFSA.) Payments for this loan do not begin until six months after leaving school, and the government pays interest while in school in the subsidized version, interest accrues in the unsubsidized version.

Parent Loans for Undergraduate Students, PLUS, are available to parents of dependent undergraduate and, most recently, graduate students regardless of need. Interest is immediately applied but repayment doesn’t begin until the final disbursement is issued.

Those who have multiple loans may want to consider consolidation before the July 1 deadline in order to lock in lower rates, but some Congresspersons are working on another bill that would cut rates in half. Whether that actually happens remains to be seen. If you are planning to take a loan out for next year, you may want to finish paperwork before July 1 to lock in the lower rate for your loan.

Students need opportunities to go to school, get an education and help build our economy. The government seems to have lost sight of this goal. They should be welcoming the public into schools instead of driving them away.

The government has cited some of their reasons for this cut: to provide help to Hurricane Katrina victims and ease the burden of various military costs in Iraq. Why should students suffer for the messes created by government issues and mistakes?

Most students live in poverty already, and many will owe thousands by the time they finish school. This additional burden will lengthen the amount of time students are in debt and how much they will end up paying back.