Despite what anyone says, about the unemployment rates students should not get discouraged from getting an education because of of college loans. However, if students are unemployed and interest rates are increasing what can we say about their financial futures?
Senate democrats could easily reject the solution for a permanent solution for 100 percent of loans. Perhaps people became too comfortable with interest rates in the last four years. The Federal Reserve has kept interest rates at record-low levels, allowing banks to borrow money from the federal government at nearly zero percent interest rates. This as allowed individuals to borrow more money to purchase cars, homes, or money to start a business.
Last year interest rates for Stafford loans for low income students was set at 3.4, but what did this do for our economy?
The one year extension cost taxpayers nearly $6 billion.
What does our president propose?
Three different types of interest rates for different types of loans. This can get rather confusing for student borrowers. There needs to be a better proposal so that students feel more trust in congress to take out loans. Rates should remain the same throughout the life of the loan.
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