We support reforms to the financial marketplace to curb bad practices by banks and lenders.
Due in a large part to pressure from consumers, students, and a coalition of advocacy groups Congress approved a legislative package that would extend the current interest rate cap on subsidized Stafford student loans. The House passed the legislation by a vote of 373 to 52, and the Senate approved it 74-19.
The legislation contains a number of pro-consumer provisions that would help students and their families. Millions of students are struggling to afford college and face the prospect of graduating with a mountain of debt. The last thing they need is for interest rates to double on student loans. This agreement offers some much needed relief to students who are working hard to pay for the education they need to succeed. Senate leaders deserve credit for finding a bipartisan solution to keep these student loan interest rates low.
Two-thirds of all college students now graduate with student loan debt, compared to just one-third a decade ago. On average, these students graduate with $25,000 in debt. An estimated 7.5 million borrowers would be facing higher interest rates on new subsidized Stafford student loans beginning on July 1 if Congress allowed the rate cap to expire. If interest rates doubled to 6.8 percent, the average student would wind up owing one thousand dollars more in student loan debt over the life of the loan.
Thanks to everyone who took action, sent in a photo for our video (below), and helped make this victory possible!
Great news. Great video.
Thank you for bringing us all together!
This is at least some weight lifted off my shoulders! My Son is getting reay to start college and be on his way of making his dream come true – be a Pediatrician. We are so worried on how we are going to afford paying for it. He has done he’s best with his AP Classes in High School. But what do you do when the Grades are not enough and your salary is too much for Full Scholarships AND, NOT ENOUGH to afford it on your own?. We have never asked for help for anything (I was told once, that in order for me to qualify for CHIP – I needed to have a total of 6 Children) – and now we are wondering how both our boys will be paying for college!? “Lower Income” people – who at least “Say” they are “lower” income can go to college free, and people who do things correctly and follow the rules – can barely afford necessities and cannot afford college. What is wrong with this picture? I am glad people like you are thinking of our Children – Thank you!!