Political Quotes

“Mr. President, last week, the Consumer Financial Protection Bureau reported that outstanding student loan debt in America has hit the $1 trillion mark--student loans. A CFPB official was cited by Bloomberg News saying that ``excessive student debt could slow the recovery of the housing market, as young people repay money for their education rather than buying homes.'' Massive student debt is also affecting consumers' ability to purchase goods and services. Yesterday, at the Subcommittee on Financial Services and General Government hearing focusing on student debt, Treasury Secretary Geithner came to talk about it. While the overall growth of student indebtedness is troubling, the most pressing concern is private student loans. Secretary Geithner also recognized that private student loans do not come with any of the consumer protections that Federal loans do. Private student loans are far riskier. Federal student loans have fixed, affordable interest rates--3.4 percent. They also have a variety of consumer protections. The Federal loans have forbearance in times of economic hardship, and they offer manageable repayment options, such as the income-based repayment plan. Private student loans, on the other hand, often have high variable interest rates--some have been quoted at 18 percent, the kind of rates you are careful about when it comes to your credit--and they have hefty origination fees and a lack of repayment options.…”