Don’t Double The Student Loan Rate!

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We support reforms to the financial marketplace that protect consumers from unscrupulous banks and lenders.

By Consumers Union on Tuesday, April 24th, 2012

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.

Take a moment and write to your Senator. Tell them your personal story or tell them about a family member or loved one who cannot afford to have the rate doubled. Then share your story with us.

 

 

 

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