How does Obama Care Affect student loans

How does Obama Care Affect Student Loans

One part of Obama care is to Abolish student’s loans. Because of Obama care all student loans are now federal loans, which will lead to higher rates.

The Affordable Care Act is set to cost students enrolled in the government’s loan program $8.7 billion in extra interest over the next decade, according to a report published by the non-partisan Congressional Budget Office.

If savings were kept inside the loan program, instead of transferred to Obamacare, as some Republican senators are suggesting, they could allow the Department of Education to lower student interest rates to 5.3 percent from 6.3 percent, according to the CBO.

Senate Minority Leader Mitch McConnell states that, Medicaid cost increases associated with the healthcare law have forced states to raise tuition rates, also negatively affecting college students.

Before this happened banks such as Citi and Bank of America provided federal loans, private loans,. Now the government provides loans and banks are no longer able to offer any type of loan to students as a result.

So over the next decade education cost may become unaffordable for most families and student loans interest rate will be raised to uncontrollable rates for most recent graduates

http://thehill.com/blogs/floor-action/senate/303299-mcconnell-blames-student-loan-rate-hike-on-obamacare