Congress addresses the burdens of student loans

Students dread them, parents oppose    them, and tax payers and Luigi Zingales fear them; Student Loans. On June 29, Congress signed its approval on a new bill that would extend current interest rates for student loans.

            The legislation packages a federal transportation bill, which extends federal highway, rail and transit programs for 27 months, with bills to student loans. This new $6.7 billion package will allow students to continue their loan repayments at 3.4% interests on Stafford Loans for one year. The Catch 22: A restriction on how long students can obtain Stafford loans.

Zingales published an opinion earlier this month outlining the horrors of student loans. Here, Congress has enacted a new plan that will currently mollify both party leaders, but outrage tax payers.

       “When all is said and done, this bill is what it is,” Representative Nick J. Rahall II, a West Virginia Democrat who was one of the senior negotiators of the bill, said to the New York Times.

For more on student loan changes, check out NYT’s coverage.

What Healthcare Really Means for You

        Sending uproar through the country, the Supreme Court upheld the health care reform that citizens affectionately dub Obamacare. Now that the polarizing issue has been settled, citizens remain confused as to what comes next. Obamacare will influence more than just health insurance. Here’s how the court’s ruling will affect consumers:

1

.Health Insurance ceases to be optional

At the center of the polarizing bill, lies the issue of constitutionality and whether the government should posses the power to mandate its people to purchase things. The health care bill specifies that everyone must obtain health insurance by 2014. For all those who plan to rebel, there will be consequences. If one does not obtain insurance by 2014, he or she will be fined $95 or 1% of income, whichever is higher. It will cost $285 per every rebellious household or 1% of income, and will continue to increase every year.

2

.Bill affects everyone, not just the uninsured

While many employees are covered through their employer’s benefits, that will change. The bill will mandate that workers at companies with fewer 50 employees will have to obtain their own insurance. On the other hand, companies with 50 or more employees must offer insurance by 2014.

3

.Discrimination no more against preexisting conditions

Sleep Apnea, Diabetes, Depression? There’s coverage for that. The law guarantees coverage for patients with preexisting conditions that companies frequently reject.

Supreme Court Rules on Landmark Legislation

Anticipation saturates the country as citizens await the Supreme Courts decision on the healthcare that President Obama proposed in 2010. The ruling of the law will have more implications than just healthcare. The ruling of the healthcare will influence the upcoming presidential election as well as future government regulations.

CNN experts expect that Justice Anthony Kennedy will be the swing vote in the decision.  According to CNN correspondent Wolf Blitzer, if the court rules the bill or even part of the bill unconstitutional, it could be deemed a favoring win for Republican candidate Mitt Romney For more breaking news on the landmark legislation, check out CNN’s coverage and follow me on twitter @BeeRay2 for the latest updates.

Overweight? There's A Pill For That!

             Jenny Craig, Weight  Watchers, and now an over-the-counter pill; Wonder what these three have in common? They all exist as cures for weight loss. On June 2, the United States Food and Drug Administration (FDA) approved the drug, Belviq, or lorcaserin hydrochloride, which should treat chronic weight gain.  

            The FDA will target overweight and obese adults who have weight-induced  medical problems. Scientists warns that the users should pair the drug with a low caloric diet and to expect modest results. For more information on the weight loss pill check out CNN’s interview with Dr. Melina Jampolis, diet and fitness expert.

Housing Market Shows Signs of Improvement

   After the deepest and longest slide in the housing market since the Great Depression, experts say claim that the housing market is improving. Since the crash in 2007, consumers have endured seductive whispers and promises of false and almost stagnant recovery.
   Analysts state that the although the recovery will move a glacial pace, the economy is still improving. In April, prices of existing homes rose for the first time in 2012Experts do not recommend that consumers go purchases lavish cars in the next 24 hours, but say that market  has returned to a healthy level. While advising frugality among buyers, real estate professionals suggest that consumers can look forward to economical improvement.

Fast and Furious becomes Death and Destruction

No, it’s not the action flick starring the Paul Walker and Tyrese Gibson; While the two subjects may share the same name, the Fast and Furious Operation Scandal carries  deeper consequences than a few wrecked cars. Recently the topic of news reports across the country, the Fast and Furious Operation (FFO) refers to a governmental program ran by the Bureau of Alcohol, Tobacco and Firearms (ATF). The ATF allowed the trafficking of firearms through Mexico in hopes to track the movements of both the traffickers and cartels. Recently the topic of news reports across the country, officials traced FFO guns to the deaths of numerous Mexican citizens and U.S. federal agent Brian Terry. Many officials have likened the scandal to Watergate, demanding the President’s explanation. 

Constitutionality Concerns Cloak the Country

Dividing the country like the tip of a blade, mandated healthcare, affectionately referred to as Obamacare, may be lawfully denied or accepted as early as tomorrow. At the heart of the healthcare bill battle, lies the issue of constitutionality. Each side of the political spectrum outlines legislation’s merits and flaws. The question that the issue raises to the people remains “Can the government mandate its people to purchase healthcare, or anything else?” Do you support or oppose Obamacare? Why? Still a little unsure of the exact details of the healthcare plan? Check out AP's video for more details.

Electrifying Essayist Passes at 71

Whitney Houston, Rodney King, and now Nora Ephron. The year 2012 marks a time period when the global community lost several prominent figures. Essayist, screenwriter, and director Nora Ephron passed away June 26, 2012 from leukemia-induced pneumonia. Ephron died at the age of 71.  

Ephron helped to produce numerous popular works such as Sleepless in Seattle, You’ve Got Mail, and Julie & Julia.  Reflecting on her life’s lessons, Ephron wrote in her collection of essays, “I Feel Bad About My Neck,” Why do people write books that say it’s better to be older than to be younger? It’s not better. Even if you have all your marbles, you’re constantly reaching for the name of the person you met the day before yesterday.” For more info on Ephron’s life and death, check out the NYT's coverage.

Democracy Brings End to Thousand-Year Tradition

Remember that seemingly trivial word written across numerous textbooks’ front covers and presidential biography jackets? Usually preceded in textbook chapters with phrases like “fourscore and seven years ago”, the term democracy appears in numerous American history textbooks and graces the walls of several American government classes. As ubiquitous as this term appears, many people fail to understand and appreciate the magnitude of democracy’s power.

A country that has suffered months of unrest, Egypt has finally finished it presidential election.  Like a PC user finally obtaining a MacBook, the people of Egypt can say that they have officially joined the majority. Celebrating with a stream of fireworks and chanting, the people of Egypt celebrated its first democratic president in literally thousands of years.  Muslim Brotherhood candidate Mohamed Morsi won 52% of the vote. As a newly elected leader, Morsi promises to represent every Egyptian citizen. For more information about Morsi’s goals, check out CNN’s election coverage.

Education on Economy Eludes Citizens

Unfortunately, the economy currently fails to meet several citizens' standards of approval. A smaller monetary exchange between employer and employee results in less mother-daughter trips to the nail salon, a cutback on the two-a-day Venti Carmel Macchiato™ with an espresso shot and mocha drizzle habit, and even cease on weekly family dinners at Carraba’s. Despite the media’s attempts to educate society of the implications, numerous citizens still do not understand the correlation of big business’s failure to the average Joe’s pay cut.

            On June 21, 2012 Moody Investors Service, the organization responsible for the approval and denial of a bank’s reputation and credibility, downgraded 15 of the world’s biggest banks including American companies Bank of America, JP Morgan Chase, Goldman Sachs, and Citigroup. While the downgrade will not affect citizens’ everyday transactions, it will change the way banks conduct business. The downgrade will affect the banks’ borrowing ability. Financial analysts state that the downgrade will not affect consumers’ transactions, so citizens do not need to panic. For more education, check out AP's video on how the economy affects citizens.

Education Becomes a social burden?

On June 13, 2012, The New York Times published an opinion piece by Luigi Zingales titled “College Graduates as Collateral.” In the opinion, Zingales notes America’s disdain for “predatory loans by mortgage brokers,” and hypocritical praise of student loans. Claiming both loans to be equally economically damaging, he pleads, to avoid another economic bust, the government should cease and desist all its higher education subsidies.

He instead offers that private companies should invest in students’ tuition. Investors would receive a portion of graduates’ future income and the IRS would help enforce debt collections, relieving the monetary burden. Acknowledging some clearly anticipated opposition, he writes, “This is not a modern form of indentured servitude.” While he Zingales makes a valid point, we do need to address the rapid increase in student debt, there remains a buzz of confusion among student communities.

Are we not repeating the same cycle; just adding a individualized face to the debt? Zingales solution seems to only personalize debt packages instead. A debt is a debt, no matter the collector.  Having the IRS play the role of bully coming to take our lunch money only exacerbates the problem.  Do you think that Zingales solution brings more positive than negative? Should the government implement his proposal?