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Some education about student loans

Recorded on April 25, 2012

From The Heritage Foundation, I'm Ernest Istook.

Politicians can make small things seem huge, and huge things seem small.

President Obama is declaring a student loan emergency, lest the interest rates go up this summer.

After all, 39 million Americans have student loans totaling over a trillion dollars.

But one writer calculates that Obama's plan doesn't even apply to three-fourths of those loans.

Actually, it's less, because it only impacts new loans made this year, not student loans already in force. But since they get a seven-year grace period before paybacks begin, nobody would be impacted for several years. Then average payments would go up only by $7 a month—but remember thats' only for a fraction of the students.

We have bigger problems, like the possible bankruptcies of Social Security and Medicare. The President doesn't have time to tackle those; he's too busy visiting colleges to woo student voters, with taxpayer money.

From The Heritage Foundation, I'm Ernest Istook.