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Phony Student Loan Issue Obscures Real Fight Over Spending

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The interest rate on federal Stafford Loans is a phony political issue. The 6.8 percent interest rate was slashed - at taxpayer expense - to 3.4 percent last year. Now Obama and Democrats in Congress are acting as if the rate returning to its usual level is an economic catastrophe for students. It isn't. We're talking about a difference of $6 per month on new loans. Existing loans are unaffected. The student debt problem is real, but the Stafford Loan interest rate issue is not.

Yet the legislation proposed in Congress to address this non-issue is still hugely consequential, because the...