News

Browse All News Topics

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


 

Most Shared Articles

March is National Women's History Month, and while we observe and celebrate the many females that brought forth change and exemplary contributions to our society, we want to give you some opportunities to pursue your dreams - without the financial burden. Ladies, check out these scholarship opportunities reserved for women only: [...]

0 months ago 0 comments Read More

Hundreds of Middlebury College students turned their backs on, and shouted down a prominent and controversial writer and scholar, Dr. Charles Murray, preventing him from giving a public lecture. The violent attack on free speech left one college professor injured and Middlebury’s President disappointed with the "deep and troubling divisions that were on display [that] night." [...]

0 months ago 19 comments Read More

Two University of Washington professors are calling out "fake news" and "alternative facts" in defense of the scientific community with their new course "Calling Bullshit In The Age of Big Data." Students, as well as the general public will have the opportunity to learn how to "detect and defuse" bullshit. [...]

1 months ago 2 comments Read More

One Faculty Master is keeping his free cookie tradition strong for College House residents, even while he's on sabbatical. Every Wednesday at 10 p.m., freshman line up Master Dennis DeTurck's apartment for a sweet snack and the singing of show tunes. This is only one example of the many food-centric traditions found at the university. [...]

1 months ago 0 comments Read More

Fighting crime is no easy task and is not meant for everyone. Careers in criminal justice aren't limited to police officers. You can study to be a criminal law paralegal, a crime lab analyst or even work for homeland security. If you plan to take this route, don't forget to apply for these solid scholarships to reduce debt while also doing your part to reduce crime: [...]

1 months ago 0 comments Read More

Due to Oregon's $1.8 billion budget crisis, public university leaders want funding reallocated from the Promise program to the state's need-based grant, which is awarded to low-income students who attend Oregon's public universities. [...]

1 months ago 1 comments Read More

The traditional college route isn't the best choice for everyone. There are ample scholarship opportunities for students who opt for a vocational career, whether it be in the plumbing, carpentry, electrical, firefighting or many others. If you want to learn or hone a specific skill as an alternative to attending a more traditional four-year college, take some time to consider these vocational scholarship opportunities: [...]

1 months ago 0 comments Read More

Wheaton College, a liberal arts college in Massachusetts, has created a refugee scholarship following the POTUS' immigration order in an effort to preserve their "foreign-born community." Another scholarship called The Privilege Grant, was recently created and is exclusively for white men "pursuing college on equal footing with their female, queer and ethnic minority classmates." [...]

1 months ago 15 comments Read More