Financial matters affecting students are at the top of the agenda for the newly elected Democrat-run House of Representatives, including a new minimum wage of $7.25 an hour and lower interest rates on subsidized loans. Although both bills sound beneficial at first, there is much more to be done in the best interest of students.
The bill that passed through the house concerning interest rates on college loans is only applies to need-based, subsidized loans. More students would benefit if the bill included all loans, subsidized or not.
Student loan debt is a major concern for all students, and any decrease in interest rates is a good thing. Instead of spending the six billion tax dollars to decrease interest rates, Congress should instead consider spending taxpayers' money on more federal grants.
No one wants to take out a loan and pay interest on it, even if the interest rate does decrease. With federal grant money, there are no concerns about interest because the grants don't have to be paid back with interest.
Even then, paying that loan back is difficult after some students work their entire high school and college tenures in a $5.15 minimum wage environment.
With the proposed increased, most students could argue the minimum wage still isn't enough to live off of.
The last time the minimum wage was increased was 10 years ago, which is a long time by most standards. In this time, the economy has gone through highs and lows, but one thing is for sure: Cost of living and inflation are still operating in full force.
Anyone working a minimum-wage job - like most of the jobs on campus - knows just how hard it is to live on a $5.15 hourly wage. The proposed $2.10 increase seems a bit behind the rising cost of nearly everything, from gasoline to natural gas to food.
Although the Democratic initiatives aren't necessarily aimed at students in all cases, the proposals so far will have a major effect on most students.
Decreasing student loan interest rates and increasing the minimum wage are great places to start the 2007 session, but continuous efforts and more practical solutions will provide better advantages to students in the long run.
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