On July 1, student loans are expected to double to 6.8 percent from 3.4 percent after congress voted to extend during the election progress. Students are being cheated as these rates increase dramatically. The current rate on student loan interest is already above market. “Higher education loans are meant to subsidize, the cost of higher education, not profit from them” said Ethan Senack, the higher education advocate.
What can students do to voice their opinions on the issue?
Student advocacy groups are releasing an issue brief against the federal government should not be profiting from student loans.
The government making profit of students loans is not what loans were designed for. Student loan borrowers graduate with an average $27,000 in debt.
What does the president plan to do with student loans?
“The president’s plan will help middle-class students and their families afford college by stopping interest rates from doubling on July 1 as part of a long-term solution that is fair, fiscally responsible and benefits more borrowers by offering lower interest rates on nearly all federal student loans next year,” said an administration official.
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