Student Loan | Student Loan Interest Rate Set To Double Unless Congress Acts
January 28, 2012 – 11:27 am
In 2007 Congress passed the College Cost Reduction and Access Act. The act phased in a 3.4 percent rate for subsidized Stafford loans for undergraduate students. But that rate is set to expire.
“At a time when Americans owe more in tuition debt than credit card debt, this congress needs to stop the interest rate on Student Loans from doubling in July,” said President Barack Obama in his State of the Union address last night.
Unless Congress intervenes, the rate will revert to six point eight percent, increasing the burden on students like Brianne Schultz.
“I have about four loans I pay on right now, and each of them vary about $20 to $90 a month in payments, so if they doubled the interest rates that would practically kill me,” said Schultz, an MSU senior studying math.
Schultz works three jobs so she can afford her rent, bills, and interest payments.
“Pretty much all my tuition is financial aid and all my financial aid is student loans,” said Schultz.
Michigan Senator and Democratic Leader Gretchen Whitmer wants the state to make higher education a priority, regardless of what Congress does.
“We need to start talking about solutions to ensure our kids are going to college and they’re not so riddled by debt they won’t ever get ahead,” said Whitmer.
That’s why Whitmer supports the so-called Michigan 2020 plan. The bill would publicly fund higher education.
“There are over 38 billion dollars in giveaways. Let’s collect that money, let’s stop giving tax breaks to special interests, and let’s use those dollars to invest in our workforce,” she said.
The Michigan 2020 plan would grant about $9,500 a year for college to all students who completed K-12 education in the state. That’s the average cost of public university tuition in Michigan.
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Tags: Student loan
