Because Congress did not act by July 1, subsidized student loan interest rates doubled from 3.4 percent to 6.8 percent. And student debt in the United States already totals $1.1 trillion, more than credit card debt.
Because Congress did not act by July 1, subsidized student loan interest rates doubled from 3.4 percent to 6.8 percent. And student debt in the United States already totals $1.1 trillion, more than credit card debt.
Today, the Senate will vote on the Keep Student Loans Affordable Act, which would bring the interest rate back down to 3.4 percent for one more year while Congress can consider a long-term solution. The alternative proposal would be more permanent, but would tie the student loan interest rate to the market, with no cap. That may reduce the deficit, but on the backs of needy students!
College already is not affordable for most, yet post-secondary education is so necessary in today’s market given our high unemployment rates, global competitiveness, and our growing need for a highly skilled and educated workforce. Raising student loan interest rates would add to the significant barriers faced by low-income students, students of color, women, nontraditional students, single parents, and veterans, making a college education even less accessible for them.
Let’s hope the Senate does the right thing and puts students first.