Well just went to accept my new slew of loans for graduate school this year, and was slightly bummed out. As of July 2012 there are no longer subsidized student loans for grad students. So now I'll be accruing 6.8 to 8% interest from the day I say yes. It isn't a huge deal, but it will end up costing me over $10 grand extra on an already 200k+ loan when it is all said and done. I have mixed feelings on this. It sucks when it hits close to home (AKA my wallet) but on the other hand I hate all the subsidies and hand outs the government gives out these days. I wish this was the start to many cutbacks...but sadly I know it isn't. It's an "easy" budget cut because it only effects the A) young (voiceless) and B) soon to be wealthy doctorates (also a freakin joke, I have friends who never went to school making more than I will as a Doctor of Pharmacy) I can't decide if this was a good move on the government or not, I just found it clever they found a way to cut back that won't have a public backlash because as so many on here like to point out, it doesn't effect very many people so who cares. The part that kills me are the interest rates. They are no longer even subsidized, and I'm paying freakin 8% for a STUDENT LOAN when you can buy a house for <3% and a car for less than 2% (often 0%). I'm blessed to have family with rental properties so I can refinance using their equity upon graduation to cut the rate in half or better. I just wish the rates for education loans were more comparable to rates for my buddies who go out and buy brand new pickups.
I believe that subsidizing the education of our younger citizens is one of the smartest uses of tax dollars. I would cut tons of other things but, since there are no million dollar lobbyists clamoring to educate our citizens, yes, it is one of the easy cuts. Unfortunately, IMO, one of the most costly for our country's future.
I agree. The only way I would be perfectly fine with the cut is if it was the first of many all across the board. It isn't and won't be, which is a shame because this is the last area I'd cut likely.
"No longer standardized student loans for graduate students". So we are not going to help out our best and brightest yet will continue to fund other BS things in our country? I wonder what happens when those graduate students move on and start making a good deal of money........they PAY it all back via taxes the rest of their lives. Tembry, even though this might sound weird, I appreciate that a person of your young age is having an internal debate about this topic. It shows your heart and mind are in the right place as you move forward and your opinion influences others around you. Good stuff and good luck with the rest of your studies.
