Tag Archives: interest rates

What’s Wrong With Everything…Still?

4 Jul

I wrote this post 2 years ago and it seems to me that…Here’s what’s wrong with everything…still.

Banks can borrow money from the federal government at less than 1% interest. 0.75% to be exact.

Can you? Nope. You can borrow it from the banks at about 5 times that rate, if you’re lucky, wealthy or not a student looking to get an education.

Banks already have your money and pay you less than 1% interest to do whatever they want with it…including putting it in places that it doesn’t belong…and then losing it!

As if that should even be possible. And banks only have to keep 3% of our money on hand in case we ask for some of it back.

And why do banks who have our money to play with… basically for free… need to borrow money from the feds anyway?

How much does the bank charge you to: write a check? Make a withdrawal at an ATM? Take out a home loan? Take out a student loan? Take out an equity loan? Pay interest on credit cards? Close an account? Receive a paper statement? Use a human teller??? …and all at a place that has your money to begin with?

This is not how it used to be and Can anyone explain why this is how it is now… and how these policies will lead to a better future for you or your children or your communities? (I am assuming you don’t own a bank)

I…continue to… welcome all thoughts, insights and explanations.

Since When Is Doing Nothing a Job?

10 Jun

The student loan crisis in the USA continues to grow and this summer the interest rate on federal student loans will double  if Congress doesn’t take action. Only in the United States can Congress  NOT doing something actually get something done and that might be the most important if not the saddest lesson that our college students will learn…

Last year, Congress delayed the doubling of the interest rate on federally subsidized student loans from 3.4% to 6.8%. which is what the rate will jump to in July should Congress fail to act this time around…Isn’t it nice that Congress likes to set these deadlines in such frequent intervals virtually setting up a nonstop game of Russian Roulette with their constituents lives…not exactly what our founding fathers had envisioned to be the role of the leaders of the free world do you think?

If the student loan interest rates double on July first and increases from 3.4% to 6.8% this could result in the equivalent of adding $5,000 to new federal loans for college students and their families.

Since 1999, the average student loan debt has increased by over 500%  while the interest on loans that the big banks get from the Fed have steadily decreased… despite the fact that these banks worked hard to bring down our economy in 2008 and then held it hostage until they got what they wanted in massive bailouts from the very taxpayers whose children now face a future of massive debt owed to…these very same banks!

You couldn’t write a more insidious crime story if you tried!

And don’t forget that federal student loans with low interest rates, such as the subsidized Stafford loan, are designed to benefit students whose families make under $50,000 a year  and these are people who certainly cannot  afford to see their interest rate jump…unlike Congressmen and bankers who I am sure never have to worry about taking out loans for their children at all since they can no doubt use their “lobbying proceeds” to cover such bills.

However the one flashlight at the end of this dark tunnel of bank and government…congress…is Senator Elizabeth Warren of Massachusetts who has introduced legislation entitled the Bank on Students Loans Fairness Act that would provide a one-year fix  by setting the student loan interest rate at the same level the Federal Reserve offers to big banks which is, believe it or not, 0.75%. That’s 9 times less than students would pay if the Congress does nothing.

So, what will our Congress do? Stand up to the banks for the love of our children…or just lie there and do nothing and let the banks make love to them? Either way, let’s hope our children don’t get it in the end.

GRACEFIFTEENTEN

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