Interest rates on new subsidized Stafford student loans are set to double to 6.8% in July if Congress fails to act affecting about 7.4 million students. Americans now owe over $1 trillion in loans for their college educations – more than we owe in total credit card debt.
Students and their families are taking out loans in record numbers because the cost of college has skyrocketed, leaving those grads with loans that average $25,000 in debt before even trying to enter the job market. Congress needs to act soon and extend a cap that has helped make the loans more affordable for millions of Americans.
While the bill is gaining bi-partisan support- both President Obama and Governor Romney support the extension- some in Congress are being stubborn and need to hear from their constituency. A vote is expected in the Senate in the coming weeks on legislation to keep the current interest rate of 3.4% in place. The existing interest rate cap was enacted through bi-partisan legislation passed by Congress in 2007.