Student loans interest rates are expected to increase this upcoming July and the impact of these rates are going to affect American households. Some federal workers and congressional staff likely are protected from the impact by a taxpayer-funded benefit that provided more than $20 million last year for them to pay down their college debts. Preferential treatment for Federal workers and congressional staff ins unjust.
Congress uses the business tactic to make government jobs more appealing to job candidates who could get higher-paying jobs in the private sector. Federal agencies spent about $72 million in 2011, the last year for which data are available, to pay down student loans for 10,134 federal workers. John Hart spokesman for of Sen. Tom Coburn says, “Student loan assistance programs are a circular subsidy that offsets the costs of Congress’ expensive desire to make education affordable.
Two-thirds of 2011 college graduates have student loans, and overall “student debt has increased significantly in recent years, nearly doubling from $550 billion in the fourth quarter of 2007 to just under $1 trillion in the first quarter of 2013,” the report said. What is the government going to do to solve student debt? Is congress asking students to chose from their dream jobs or will they continue to bribe people to to take on government jobs.
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