The American Heritage Dictionary says that to Pander is to give gratification (to weaknesses or desires); something politicians on both sides of the aisle are adept at, as is evident in this editorial from the Washington Post.
The recent news about how the interest rate of Federally Subsidized Stafford Loans is set to increase from 3.4% to 6.8% for new loan originations after July 1, 2012, is missing the larger point.
College students do not need to be bogged down by political banter on a short-term fix that may help them “save” the less than 30 cents a day it would cost them should rates rise to 6.8% on the subsidized loan. Students should understand that the taxpayers are already footing the bill for the unsecured debt that was given to them with no collateral, to help them pay for an intangible asset (the student’s education). Phew, that’s a mouthful!
Students and taxpayers alike, are smart enough to know that this election year gimmick will only add to the already unsustainable national debt that they will end up paying anyway. As Ben Franklin once said, “never confuse motion with action.” In other words, don’t put off until tomorrow, what can be done today.
Pay the Piper now.
Instead of worrying about the interest rate changes on student loans, students would be better served planning for their college years, both financially and academically, before their Sophomore year of high school is complete. When families know how to make practical decisions planning for the cost of higher education, they tend to find more success meeting their financial goals.
The CollegeSearchGamePlan helps families get started on the right foot. Learn more about making informed choices for college by listening to the Affordability Review and the ancillary videos.