Congress Plans to Double Stafford Loan Interest Rates

Mar 14, 2012

by Suada Kolovic

Congress Plans to Double Stafford Loan Interest Rates

Recent reports suggest that student loan debt has surpassed credit card debt for the first time and will reach $1 trillion this year. The average college student leaves owing $25,000 in loans, putting them at risk of having to significantly delay moving on to different life stages such as buying a house, getting married and even having children. Curious as to how the government has responded in aiding and relieving students of insurmountable debt? By possibly doubling the interest rate of the most popular federally subsidized loans, of course.

On Tuesday, college students delivered more than 130,000 letters to congressional leaders at the Capitol to protest the increase. Unless Congress takes action, the interest rate on subsidized Stafford loans is set to double from 3.4 percent to 6.8 percent on July 1, increasing the average debt by $2,800 for more than 7 million students receiving the loans, according to a spokesman for the Democratic members of the House Committee on Education & the Workforce. Why is Congress considering the increase when so many students are already in debt? In 2007, Congress voted to cut the Stafford interest rate, which in turn cost an estimated $7.2 billion from 2007 to 2012 and, according to the Congressional Budget Office, that burden was shouldered almost entirely by lenders and loan-guarantee agencies. "We all want to promote efforts that will reduce college costs, but the era of empty promises has to end," said John P. Kline Jr., a Republican from Minnesota who is the committee's chairman. "The interest rate hike students face is the result of a ticking time bomb set by Democrats five years ago," Mr. Kline said. "Simply calling for more of the same is a disservice to students and taxpayers." (For more on this story, click here.)

Soon-to-be college graduates, do you fear crippling student loan debt? What steps are you taking to prevent becoming a statistic?

And remember, there’s no need to rely on expensive student loan options to pay for your college education. For more information on finding free scholarship money for college, conduct a Scholarships.com free college scholarship search today, then apply and win! It’s that easy!

Discuss

Share your thoughts and perhaps thousands of students will benefit from your unique insight on the subject!



If you can read this, don't touch the following fields


 
Comments (0)

Most Shared Articles

Perhaps your 2017 New Year's Resolution is to earn more free college money - that's our goal for you! 2016 is now coming to an end, and so are these scholarship deadlines, so hurry and apply to these end-of-the-year awards while you still can! Girls Who Illustrate Awesomeness Scholarship [...]

0 months ago 6 comments Read More

The incoming Trump administration could reverse President Obama's actions on college sexual assault, giving hope to those who claim their lives were destroyed by false rape claims. However, this raises concerns for some that perhaps those who have been victims of sexual assault and made legitimate reports may not get the protection they deserve. Since 2011, colleges and universities have been [...]

1 months ago 5 comments Read More

Students are being called to "expose and document" professors "who discriminate against conservative students, promote anti-American values, and advance leftist propaganda" on a new website called Professor Watchlist. Turning Point USA, a 501(c)3 non-profit organization founded in 2012 promotes ideas of free-market capitalism and "educates students about the importance of fiscal [...]

1 months ago 7 comments Read More

Finding trustworthy and accurate scholarship and other financial aid information can be tricky these days, especially when it comes to sources that offer unreliable, often misleading content. "Scholarships" offered by scammers who charge fees and operate outside the laws, rules and ethics of modern-day netiquette abound. Here at Scholarships.com, we carefully and thoroughly vet [...]

1 months ago 0 comments Read More

American Flags designated for a Veterans Day ceremony at Brown University were torn and trashed by university students. While a group tried to protect remaining flags, others continued what they believe was a "justified" protest against the recent presidential election. The American flags arranged on Brown University's Main Green flew in honor of the annual Veteran's Day ceremony, which made [...]

1 months ago 16 comments Read More

Black Friday deals will be unleashed in just two weeks with some of the largest retailers getting an early start on Thanksgiving Day. When it comes to end-of-the-year scholarship hunting, no worries - we've got you covered. Score big this holiday season (and semester) with free college money: RMA Foundation [...]

1 months ago 0 comments Read More

The Associate Dean featured as the "chief villain" in a discredited Rolling Stone article on an alleged gang rape at the University of Virginia has been awarded $3 million by a federal court jury. This decision followed an earlier ruling that the discredited article ruined her reputation and "undermined her work to help students who had been sexually assaulted." In November 2014, Rolling Stone [...]

1 months ago 6 comments Read More

November is National Scholarship Month and in its honor, we're doing what we do best - offering the best scholarships out there to help students like you fund the cost of college. Whether you're in high school trying to land some free money before heading off to school or a college student looking to pay next semester's tuition, here are some of the few generous scholarships available to [...]

1 months ago 0 comments Read More

Two fans at UW Madison's weekend football game wore costumes depicting Donald Trump lynching President Obama. The school, though stating the costume was "repugnant" and "insensitive," backed the demonstration as free speech, protected under the First Amendment. Critics are now "deeply concerned" with the lack of action. A photo of the costume went viral on social media and police asked the [...]

1 months ago 13 comments Read More