President Barack Obama is pushing Congress to freeze the current interest rates on U.S. student loans. This initiative by the president is attracting much attention and support from middle-class and young voters who are vital to his re-election strategy.
Federally subsidized Stafford loans interest rates are planned to jump to 6.8 per cent on July 1 from the current rate of 3.4 per cent. The rate enhancement would affect about 7.4 million students, according to the White House.Obama said in his weekly radio address, “Higher education cannot be a luxury in America...it’s an economic essential that every family must be able to afford.”
Obama further said in his radio address that maintenance of student loan rates low is “a question of values. We need to erect an economy where each person gets a fair chance, everybody does their reasonable share and where all... enjoy the same set of rules."
He further added that ‘‘the intended freeze would be included in the upcoming Budget of Financial Year 2012- 13." The Congressional Budget Office estimates the one-year freeze would cost $6 billion.
The announcement will be made by Obama next week, in front of college students in the combat zone states of North Carolina, Iowa and Colorado. The president will also make another appearance on April 24, 2012, at the NBC television program “Late Night with Jimmy Fallon” to approach wider viewers of young voters.
Obama has outlined his re-election message to highlight inconsistency with Republicans on budget priority. Obama in his promotional campaign have had a discussion about his strategy to sustain federal support for education, infrastructure, its expansion and development of alternative energy, whereas condemning his rival's agenda of sacrificing those programs to provide tax cuts for top earners.
Some relevant facts & figures about the young voters:
A close contest against presumptive Republican nominee, the former governor of Massachusetts, is anticipated according to the president’s political advisers.
Young voters age ranging from 18-24 supported Obama 66 percent to 32 percent for Republican presidential nominee John McCain, in the 2008 elections.
White House Point of view regarding the announcement visit:
Jay Carney, White House press secretary said Obama’s next week two-day trip is for “official engagements” rather than politics.
Carney further elaborated that if the president were to hang about out of battleground states in an election year, “he would be severely restricting his ability to go to big parts of the country.”
Sen.of Missouri said in the Republican weekly radio address that the mounting energy costs are a more urgent concern for voters.
Blunt said, “If we are going to debate about economic justice, or about fairness, one of the major prevailing economic issues faced by the major chunk of population is unemployment and skyrocketing gas prices."
The standard cost of four-year college has roughly tripled since the 1995-1996 academic year and has doubled for a private school education, as per the data provided by the college board, that is a nonprofit group based in New York.
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