More and more competition in the job market has led to more and more competition in education. This has in turn driven up the price of attaining a college degree and created a huge increase in student debt. It is now estimated the there are now outstanding student loans amounting to $1 trillion.
This $1 trillion equates of about $13,000 per student. It is suggested that this is a manageable amount for a student to deal with, as the fact of having the degree will enable the student to land a well-paid job. When loans are higher than this, it is often because some extra graduate training has been taken, and again the increased pay from these credentials hopefully offsets the increased payments on the load.
There is however a big worry that interest rates will rise and make the repayments on these loans more expensive, even doubling them. Thinking ahead and as a form of recruitment drive, the Federal Government is shielding current and future Federal Employees from any rises in their loan payments.
Yes the Federal Government has to do something to compete in recruiting and retaining staff from the private sector, but does it really need to do this. There are major differences between working in the two sectors and these attract different people. A job for the Federal Government is a job for life with slow pay increments. In the private sector there are riches to be made but all could be lost at the same time. It seems that the lawmakers have just voted in another sweet deal for themselves and their employees, all at the expense of the taxpayer, again.