Democrats Quick to Help Students—Sort Of

As part of their initial batch of legislative initiatives, the U.S. House of Representatives passed a plan which will cut the interest rate on student loans in half over five years. While this does not address grants, a flawed application process, or issues of equity, this proposal will go a long way toward supporting a better-educated and less indebted society. Currently, students pay an interest rate of 6.8 percent. Loans are open to a wide array of students, covering cross-sections of American society. The bill will only help students who graduate from university.

The benefits of a well-educated population are well known. As the world economy expands, the need to compete with a talent pool as deep as the world is large, Americans are falling behind in all aspects of education. China was noted for graduating more English-speaking engineers that America, for example. An educated workforce will go a long way toward addressing the great challenges of our era, including renewable energy, maintaining a productive economy and producing more competent political leaders.

The importance of education, however, means that simply cutting interest rates is not nearly enough to truly assist in educating its poor and middles classes.

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