Policy Documents

Now Let’s Try Real Student Aid Reform

Neal McCluskey –
August 2, 2013

In this CATO Commentary that article appeared in Daily Caller on August 2, 2013, Neal McCluskey writes in the latest bi-partisan bill sent to the president, that student aid programs should be phased out.  He asserts: 

The bill, which ties interest rates on federal student loans to 10-year Treasury notes, certainly makes more sense than having Congress arbitrarily set a rate. Student loan rates moving with overall interest rates — not stuck well above or below them — makes sense if you are trying to balance the government’s need for revenue with a desire to furnish loans more cheaply than students would otherwise be able to get them. For supporters of such programs, getting this should have been simple, which is why — despite significant fighting — it ultimately got done.