Lower interest rate is welcomed, but trivial

Upon signing a bill that lowered the interest rate on higher education to 7.46 percent, President Clinton declared, "Today, with this lowering of the interest rates ... we can really says that every high school graduate in America, regardless of income, can afford to go to college."

Although any borrower readily applauds any decrease in interest rates, especially one that will save the nation's graduates $11 billion over the next five years, this a bit of an overstatement.

Considering the way interest payments can be deferred until after graduation, interest expenses have never limiting factor in determining whether a person can afford a college education or not.

Rather, it is because the total cost of a year in a public college averaged $7,773.

Because of the low ratio of funds that can be borrowed to average costs, a more effective way to expand access to tertiary education would be to increase the maximum amount available through Stafford loans.

If Congress truly wishes to make a difference in access to college education, the 0.79 percent interest decrees in the interest rate is rather unimpressive.

And considering November's elections are less than a month away, the bill seems like an ideal way for legislators to pad their flyers with meaningless accomplishments.