Wednesday, July 3, 2013

Sweet Subsidies to the Wrong People

About those doubled interest rates on student loans, this letter from today's Star Tribune:

Debating the impact of loan rate increase

It is instructive to compare Congress’ treatment of students to that of sugar processors. The interest on student loans is allowed to double to 6.8 percent (“Students fret over loan rate increases,” July 1). Meanwhile, large sugar processors in 2012 took out $8.8 billion in loans at rates ranging from 1.125 percent to 1.25 percent, which can now be paid off in sugar that the U.S. Department of Agriculture will have to sell off at a loss.

Apparently cavities and obesity are a higher congressional priority than education.

JOHN SHERMAN, Moorhead, Minn.

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