Yesterday, the President proposed to lower the percentage of one’s income you must pay on your federal student loans. Currently, payments on student loans are capped at 15 percent of income, and the new rate would be 10%. It is a fine idea, and coupled with the President’s earlier proposal to get banks out of the student loan business, where they make a risk-free windfall at taxpayer expense, it shows the kind of below-the-radar good policies the administration is pursuing.
He needs to go further. I know that the centerpiece of his state of the Union speech tomorrow night is evidently going to be a freeze on domestic discretionary spending. But, he should find some programs to kill, preferably in the districts of those who opposed health care reform, and pump the money into additional funding for college loan programs. Acknowledging the need to restrain government spending should never entail eating your seed corn, and investments in America’s higher education system undoubtedly reaps rewards for years to come.