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Student Loan Rate Cut to Counter Minimum Wage Hike

by Scott Ott · 58 Comments

(2007-01-11) — As America’s working poor prepare for a windfall of wealth from the $2.10/hour boost in the minimum wage approved by the House yesterday, Democrats in Congress will take bold action next week to ensure that the new fatter paychecks don’t discourage people from seeking a college education.

As Democrats march through the agenda for their first 100 hours as the majority in Congress, they plan to cut interest rates on federal student loans by half to lure minimum wage workers from their newly-lucrative jobs into institutions of higher learning.

“When you’re raking in $7.25 per hour,” said House Speaker Nancy Pelosi, “It’s hard for a university to pull you away from the grill with hazy promises that more education will lead to a better life. We Democrats have compassion for struggling universities.”

The interest rate cut on student loans, Rep. Pelosi said, will allow colleges and universities to increase the price of their services, helping the higher education industry emerge from a slump that has seen average tuition prices increase annually by only twice the rate of inflation.

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Tags: Education · U.S. News

58 responses so far ↓

  • 1 mig // Jan 11, 2007 at 8:34 am

    Okay so now IS the time to get a college education. Guess I’ll que up at the university for re-education camp.

  • 2 Fred Sinclair // Jan 11, 2007 at 8:36 am

    ONLY twice the rate of inflation. Sure am glad it didn’t get excessive. Nice thing though - the illegal aliens only have to pay “in state” tuition.

    Heirborn Ranger

  • 3 Darthmeister // Jan 11, 2007 at 8:36 am

    I don’t need no steeeenkin’ student aid. Where’s my welfare check?

  • 4 camojack // Jan 11, 2007 at 8:48 am

    “When you’re raking in $7.25 per hour,” said House Speaker Nancy Pelosi, “It’s hard for a university to pull you away from the grill…”

    Or even the deep fat fryer, for that matter.

  • 5 Roguet55 // Jan 11, 2007 at 8:56 am

    Do un-documented folks take out student loans?
    I thought that was just for the stooges that actually have lived here legally or might have lineage that paid taxex and a price for the privilage!

  • 6 Rock Slatestone // Jan 11, 2007 at 8:57 am

    If at first you don’t succeed…just wait for the next minimum wage hike.

  • 7 Roguet55 // Jan 11, 2007 at 8:58 am

    Damn preview, I corrected that!
    Taxes

  • 8 mig // Jan 11, 2007 at 9:05 am

    Taxex, Taxes Texas. whatever.

  • 9 Analchord // Jan 11, 2007 at 9:21 am

    [deleted]

  • 10 Maggie // Jan 11, 2007 at 9:31 am

    Scott….re#9
    Check it out…….raunchy stuff.

  • 11 camojack // Jan 11, 2007 at 9:35 am

    Next they’ll be asking for eleventeen dollars an hour…

  • 12 RedPepper // Jan 11, 2007 at 9:57 am

    Perhaps the first thing they should sign up for is a course in Mathematics …

    Boomer Generation Is In A State Of Denial .

    Nancy Pelosi promises to “build a better future for all of America’s children.” If she were serious, she would back cuts in Social Security and Medicare. President Bush calls “entitlement spending” the central budget problem. If he were serious, he too would propose cuts in Social Security and Medicare.

    They are not serious, because few Americans — particularly prospective baby-boom retirees — want them to be.

  • 13 Ms RightWing, Ink // Jan 11, 2007 at 10:32 am

    So, who is making the Taco John run. Man, cough, I sure am hungry.

    Someone turn up the Pink Floyd cassette

    We don’t need no education
    We don’t need no thought control
    No dark sarcasm in the classroom
    Teachers leave them kids alone
    Hey! Teachers! Leave them kids alone!
    All in all it’s just another brick in the wall.
    All in all you’re just another brick in the wall.

    We don’t need no education
    We don’t need no thought control
    No dark sarcasm in the classroom
    Teachers leave them kids alone
    Hey! Teachers! Leave them kids alone!
    All in all it’s just another brick in the wall.
    All in all you’re just another brick in the wall.

    “Wrong, Do it again!”
    “If you don’t eat yer meat, you can’t have any pudding. How can you
    have any pudding if you don’t eat yer meat?”
    “You! Yes, you behind the bikesheds, stand still laddy!”

  • 14 Fred Sinclair // Jan 11, 2007 at 10:34 am

    Got to re-learn to read the preview - got out of the habit. that should read vacation.

    Heirborn Ranger

  • 15 mig // Jan 11, 2007 at 11:13 am

    Ms RightWing- for me that would be

    I don’t got no education
    Never got no education
    Hey Teacher Always left the room!

  • 16 Walter E. Wallis // Jan 11, 2007 at 11:38 am

    They still ignore my recommendation - make the first $5/hr of any wage free of all deductions. If you work 40 hours, you take home $200.
    Then, make tips tax-free gifts.
    Then bring back the three martini lunch, adjusted for inflation to the 5 martini lunch.

  • 17 Ms RightWing, Ink // Jan 11, 2007 at 11:47 am

    Take it from me, the poor don’t pay income taxes, they get food stamps, reduced rent, and free medical in most cases.

    The government takes care of those who don’t take care of themselves. And believe me when I tell you, when they (social services) persuade you to take one thing, they will snare you and keep you poor.

    Government help is a lifesaver to some (few) and a crutch to the majority

  • 18 upnorthlurkin // Jan 11, 2007 at 11:48 am

    Ooo, thanks Scott! I love the preview! The copy, cut and paste works again now too! And spell check!! We are in hog heaven now!! Ms Rightwing, that trip to Taco John’s is now gonna cost big bucks!! No more selling a pint of blood for beer and snacks.

  • 19 Ms RightWing, Ink // Jan 11, 2007 at 11:50 am

    I know I said something???

  • 20 Ms RightWing, Ink // Jan 11, 2007 at 11:52 am

    Shucks, there was my words of wisdom all the time.

    Upnorth
    What no blood for tacos. Where is Cindy when she is really needed

  • 21 da Bunny // Jan 11, 2007 at 12:27 pm

    mig re: # 1…”re-education camps” is right! Unfortunately, the universities are just a continuation of the NEA agendas pushed in the public schools.

  • 22 GnuCarSmell // Jan 11, 2007 at 12:31 pm

    One of the beautiful things about the minimum wage (for Democrats) is that is perpetuates an underclass who can never reach the first rung on the economic ladder. A permanent underclass equals a reliable voter bloc for the purveyors of the victimhood cult. It’s brilliant, I tell you.

  • 23 Shelly // Jan 11, 2007 at 12:38 pm

    I think one reason Congressmen relate so much to university professors is because they have similar work schedules - 1:00-3:00 on Tuesdays and Thursdays, and occasionally by appointment.

  • 24 LuckyDog // Jan 11, 2007 at 1:40 pm

    # 25 Shelly

    Hey, I resemble that remark! And anyway, it’s 12:00 - 3:00 on Tues/Thurs. So there.

    :}

  • 25 Harry Daschle // Jan 11, 2007 at 2:09 pm

    OK Nancy, how about a raise for our service men and women?

  • 26 Fred Sinclair // Jan 11, 2007 at 2:52 pm

    Democrat intelligence:

    Eleven plus years on active duty in the Air Force - I did not fly a plane - the powers that be, decided they wanted me, flying a desk in the Accounting and Finance Office (made sure everybody else got their pay - right amount due - on time.) President John F. Kennedy (D-Mass) got passed the biggest PAY RAISE in history, for the military.

    Case in point: A Master Sergeant (E-7) was getting in addition to his “regular” pay - the overseas bonus, for his rank, of $22.00 per month. [non-taxable]

    His/her pay raise was $25.00 per month [taxable]. At the same time ALL overseas pay was deleted. The taxable $25.00 raised the pay into a higher tax bracket so the gross $3.00 monthly increase was overshadowed by the higher tax bite resulting in the Sgt. ended up with a final $1.61 less than was being received before the “pay raise”.

    Anybody want to guess how big the Congressional ‘pay raise’ THEY VOTED THEMSELVES AT THE SAME TIME? Don’t try to guess - it was too big for me to remember but it was in the thousands of dollars per month.

    Suffice it to say, there was a signifiant lowering in the military “Espirit de Corp” that month in Germany.

    Heirborn Ranger

  • 27 conserve-a-tips // Jan 11, 2007 at 2:59 pm

    Roguet55: No, they don’t need student loans because they get scholarships.

  • 28 Fred Sinclair // Jan 11, 2007 at 3:05 pm

    Re. #28 PS: I was an E-4 at the time - my pay raise was $13.00 per month [taxable] my o/s pay was $11.00 per month [non-taxable] but I was raised just short of the higher tax bracket, so I actually got the $2.00 per month difference.

    So much for Democrat’s military pay raises.

    Heirborn Ranger

  • 29 JamesonLewis3rd // Jan 11, 2007 at 3:21 pm

    Ah, the good old days (1967).

    $68.50 a month. Then I got married and they took out $50.00 to add to my wife’s allotment.

    My 17 year-old sense of self suffered but, it didn’t matter, I was nuts anyway.

  • 30 onlineanalyst // Jan 11, 2007 at 8:02 pm

    With this loan rate cut, now students will not have to pay for their tuition by doing the jobs that Americans do not want to do. Instead poor “scholars” can doobie-doobie-do more in their free time.

  • 31 conserve-a-tips // Jan 11, 2007 at 11:31 pm

    Scott, I sent my daughter (who is paying Masters tuition rates) your wonderful piece and she gave me a response that I am posting for your benefit. I might note that she was let go from her job at a college in order to hire a bilingual individual of Latino descent (and that is how they advertised for the job). She considered a discrimination lawsuit but found a better job immediately - and in this awful economy too, mind you - and so she just moved on.

    Mom,
    Why would someone go to college if they were making 7.25/hr? (Actually, I would hardly classify that as “lucrative” and that’s coming from an Oklahoman.) And I understand why Pelosi is so excited, as she would love to be “raking in” that amount as well. Thank God the Democrats have compassion for struggling universities. Hopefully they’ll get more Hispanics and we can all eat chimichangas together.

    Your somewhat bitter daughter

  • 32 Ms RightWing, Ink // Jan 12, 2007 at 12:16 am

    When you’re broke you’re broke.

    I can be just as hungry at $15 an hour as I can at $7.50 an hour

    Okay fellow scrapplers, git out your geetar
    and sing with me this old Woody Guthrie tune.

    A one an a two an a three

    In the squares of the city, In the shadow of a steeple;
    By the relief office, I’d seen my people.
    As they stood there hungry, I stood there asking,
    Is this land made for you and me?

    As I went walking, I saw a sign there,
    And on the sign there, It said “no trespassing.” [In another version, the sign reads “Private Property”]
    But on the other side, it didn’t say nothing!
    That side was made for you and me.

  • 33 MargeinMI // Jan 12, 2007 at 5:55 am

    Morning all! Don’t worry Fred, I’m still here and kicking. I gave up on Yahoo mail long ago, last I checked I had thousands of emails in my inbox, 99.999% spam. Thanks for thinking of me though, and prayers are always welcome!

  • 34 Darthmeister // Jan 12, 2007 at 7:04 am

    Oil plunged below $52 barrel…
    Liberal “experts”: This is bad news for Americans as this will send the economy into a tailspin. And if the price of oil goes up this is bad news for Americans because the price of gas will soon be over $3/gallon. Anyone see a pattern here?

    Democrats and Some Republicans Oppose Bush’s “Surge” Option
    And some of these twits are on record as previously condemning Bush for not having enough troops in Iraq! You just can’t please some people.

    Explosion in U.S. Embassy In Greece
    It’s Bush’s fault. He’s now provoked the radical left-wing which, curiously enough, has been in bed with Islamofascists. Sound familiar?

    Cloning opens door to ‘farmyard freaks’…
    Oh no, more “progressive” Democrats! Just what we need.

    DOW HITS NEWS RECORD
    Democrats: The worst economy since the Great Depression

  • 35 mig // Jan 12, 2007 at 8:04 am

    Darth-
    I tried to read up on the explosion in an US Embassy in Greece and only got passed articles. Is this a recent event?

  • 36 onlineanalyst // Jan 12, 2007 at 8:18 am

    mig: Go over to captainsquartersblog for the US Embassy in Greece story. This event appears to be the handiwork of a Leftist malcontent.

    More Pelosi hypocrisy on the minimum wage can be found in the “Something Fishy” thread at powerlineblog. It seems that some “schools” (of fish) are more equal than others in Nanny Peloser’s Animal Farm.

  • 37 RedPepper // Jan 12, 2007 at 8:22 am

    FYI.

    Blast At U.S. Embassy Called ‘Terrorism’ .

    The U.S. Embassy in Athens came under fire early Friday from a rocket that exploded inside the modern glass-front building but caused no casualties in an attack police suspect was the work of Greek leftists.

  • 38 Ms RightWing, Ink // Jan 12, 2007 at 8:27 am

    Another day another attack. I think I will become a Democrat then I can live on a happy cloud where nobody wants to destroy our country

    Oh, good morning Scrapplers

  • 39 kajun // Jan 12, 2007 at 8:28 am

    Get ready for the $3 gas…yesterday the price here went down to $1.99 per gallon; A sure sign of a price hike to come! It might even go up to $7.25 per gallon, in order to sort of even things up.

  • 40 Maggie // Jan 12, 2007 at 10:00 am

    All I am asking as an American citizen is that I receive the same rights and benefits as an illegal immigrant.

  • 41 Maggie // Jan 12, 2007 at 10:02 am

    Good Morning everybody!

  • 42 Shelly // Jan 12, 2007 at 10:39 am

    Maggie, good luck with that.

  • 43 upnorthlurkin // Jan 12, 2007 at 10:41 am

    Good morning! Too cold up here (-13°) to go for the morning hike to the park with the dog! We made it to January 12 before cold temps set in though so I’m grateful to old Ma Nature for such a short winter!! Global warming?! Bring it on!! :lol:

  • 44 upnorthlurkin // Jan 12, 2007 at 10:42 am

    And, I’m waiting for $1.99 gas up here so I don’t feel so guilty using the “auto-start” !

  • 45 Shelly // Jan 12, 2007 at 10:52 am

    FYI, there is info about the embassy in Greece at Michelle Malkin’s site as well, and a gallery of pictures she’s taken in Iraq. What beautiful children.

    Littlegreenfootballs.com showcases a great work of art.

    Powerline not only shows Pelosi’s hypocrisy, they also showcase three entries from Mark Steyn to Bill Bennet’s “Sandy Berger Lies” contest. Be sure to check it out. I’m wondering if we all know Mr. Steyn by the name “The Great Santini.”

  • 46 mig // Jan 12, 2007 at 12:47 pm

    upnorthlurkin-

    Okay so close your eyes while I tell everyone that I ammoving bushes, redesigning my yard,mulching AND I am sweating in my shorts and shirt.

    op’em eyes now.

    I am loving global warming. Except that it isn’t unusual for us here in the south to have a mild winter. It just means March will be a living, um, bad place.

  • 47 mig // Jan 12, 2007 at 12:50 pm

    Typical Greeks. Now there is a country that really are nationalists. Being half greek I can tell you that only half of me was accepted, at arms length. It truly is the Greeks and then everyone else. And they can’t help but dislike Americans. There’s no reason except (in my opinion) we’re just a bunch of mixed mutts.

  • 48 mig // Jan 12, 2007 at 1:17 pm

    Gas is 2.15 here. Well, kunch os over. Gotta go make my minimum pesos.

  • 49 upnorthlurkin // Jan 12, 2007 at 2:15 pm

    Well, the temp shot up to -9° so we drove to the park to play!! Poor little girl can’t play too long without needing to warm up so I parked the gas guzzler facing south to let the cause of global warming (the sun for those of you in Rio Linda) keep the interior warm. We played for about a half hour, came home and are now cuddling on the couch! Garden away Mig! I sure would if I could! If it weren’t for elderly family up here, we’d join y’all down there! Guess I’ll go bake something…

  • 50 DepecheNode // Jan 12, 2007 at 3:34 pm

    40.78% increase in wages. That prices 3 of a 10-crew out of range. On a 2 year contract, I’m screwed.

    Oh well, back to drivin’ a bus again. Guess I’ll try the whole ‘business’ thing again sometime later. What happens to the unskilled 10 young gys I’m putting out of work?

    Well, there’s 10 who won’t be paying child suport through income witholding next month, for starters ;)

  • 51 kajun // Jan 12, 2007 at 4:26 pm

    Well, for all you “coolies” information; It’s 72 degrees above 0 here—overnight low was 61. Too muddy to dig in the yard though.

    Global warming is moving from South to North; just like people originally did, on this Continet.

  • 52 Ms RightWing, Ink // Jan 12, 2007 at 4:51 pm

    48 and rainy here in the dirty old factory town. Finished going to Dr. (swollen glands, he thought I had mono-ha!, did that when i was 19)

    Finished going to physical therapy now I will finish my nap

  • 53 mig // Jan 12, 2007 at 4:52 pm

    I can barely walk. I am hurtin’. All my ’struttin’ has landed me in a chair. Now if I can just make it to the shower. There’ll be no cook in the cantina tonight. Better to go get me a taco taco enchilada for pesos.

  • 54 JamesonLewis3rd // Jan 12, 2007 at 5:51 pm

    I’m looking for a Martian convenience store (do they still call them “carry-outs” in OH? I still catch myself using that term, even after almost 4 decades) or, maybe, a restaurant with Martian cuisine, so I can spend some of this money I brought with me from home.
    :shock:

  • 55 Fred Sinclair // Jan 12, 2007 at 8:42 pm

    Re: #33 Marge - Now you know why I have a Mac. I have yet to get my 1st piece of “Spam”. Really don’t know what one even looks like. The “Catcher’s Mitt” is built in at the factory. The anti-virus “mitt” also does it’s job well.

    Glad to learn all is well in your piece of Michigan, and with you. Holland, Mi. is also alive and well. One way or another we conservatives will weather Granholm’s re-election, with grit in our craw and steel in our nerves and work, with God’s help to turn this state red in 08.

    Heirborn Ranger

  • 56 nylecoj // Jan 12, 2007 at 9:08 pm

    From the Patriot Post

    Of note, the minimum-wage hike specifically exempts a major tuna company, StarKist Tuna, in San Fran Nan’s home district from implementing the pay increases-certainly nothing fishy about that in this, the most ethical of Congresses…

    http://patriotpost.us/

  • 57 Darthmeister // Jan 12, 2007 at 11:37 pm

    The Washington Times:

    House Republicans yesterday declared “something fishy” about the major tuna company in House Speaker Nancy Pelosi’s San Francisco district being exempted from the minimum-wage increase that Democrats approved this week.

    “I am shocked,” said Rep. Eric Cantor, Virginia Republican and his party’s chief deputy whip, noting that Mrs. Pelosi campaigned heavily on promises of honest government. “Now we find out that she is exempting hometown companies like StarKist Tuna from minimum wage. This is exactly the hypocrisy and double talk that we have come to expect from the Democrats.”

    On Wednesday, the House voted to raise the minimum wage from $5.15 to $7.25 per hour.

    Nancy Pelosi is a two-timing hypocrite? Say it ain’t so, Nancy! I bet Charlie the Tuna is really is really ticked that his kind are being processed by cheap labor compliments of fancy-dance Nancy.

  • 58 American Daughter Media Center - Front Page » Blog Archive » CANTO’S CORNER // Jan 15, 2007 at 11:56 pm

    […] For a little humor, see Student Loan Rate Cut to Counter Minimum Wage Hike By Scott Ott, Editor-in-Chief, ScrappleFace.com: “As America’s working poor prepare for a windfall of wealth from the $2.10/hour boost in the minimum wage approved by the House yesterday, Democrats in Congress will take bold action next week to ensure that the new fatter paychecks don’t discourage people from seeking a college education. […]

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