Last week, state Senate and Assembly Democrats walked down State Street to hear students’ perspectives on the current student loan crisis. The event featured state Sen. Chris Larson, D-Milwaukee, as well as state Sen. Fred Risser, D-Madison, and state Rep. Chris Taylor, D- Madison, among several others.
I very much appreciate that the democratic leadership took the time to hear student’s stories and thoughts. Nevertheless, as I walked out of the room knowing my voice had been heard, I could not help but feel unsatisfied. It disappoints me that so much of the dialogue about the student crisis revolves around creating Band-Aid solutions to stitch-worthy problems.
For example, this summer Congress passed a student loan bill, which lowered undergraduate rates from 6.8 percent to 3.84 percent and tied the student loan interest rate to the interest rate on 10-year treasury notes. The bill also mandates a cap of 8.25 percent on federal loans. The treasury note interest rate fluctuates, which is especially important as the rate could skyrocket if Congress does not reach a deal to raise the debt ceiling next month. While the bill lowers rates today, the bill does not address reducing the costs of post-secondary education, which is why students take loans out in the first place. Even worse, the bill will likely leave current high school freshmen paying higher interest rates when they attend college than they would have been should the bill never have been passed. The treasury rate will inevitably rise as the economy continues to improve.
This summer, the state Legislature placed a tuition freeze on state tuition. While I do appreciate that my tuition rates will not rise for the rest of my undergraduate career, the legislature just kicked the can down the road once again. The tuition freeze only lowers my rates on the backs of students who will attend college three, four, five years from now. This bill also fails to substantively lower college costs. The problem before us is complex and by no means in this piece am I attempting to solve this troubling problem. However, our legislators at the national, state and local levels must take this issue more seriously. Issuing nice-sounding press releases and holding listening sessions, while decent starts, are not going to resolve this crisis. A trillion dollar bubble with the ability to crash the economy demands more. This is where we, as young voters, are important. We should all attend listening sessions to let our legislators know that our votes will go toward the candidates who promote bold and creative solutions to skyrocketing college costs; our votes should go to legislators such as U.S. Rep. Mark Pocan, D-Wis., who proposed a bill in Congress to allow college graduates to refinance their student loans.
Alex is a junior majoring in political science, economics and environmental science. How do you feel about the college loan crisis? Please send all feedback to opinion@dailycardinal.com.
