Stopping the Student Loan Interest Rate Hike
In his State of the Union Address, President Obama laid out a blueprint for an economy built to last—an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values.
The President has worked tirelessly to get our economy growing again, but he knows there’s much more we can and must do, and that includes making smart investments in education that lead to better jobs and a stronger middle class. The strength of the American economy is inextricably linked to the strength of America’s education system: particularly at this make-or-break moment for the middle class we must continue to invest in creating an American workforce that has the skills for success in the global economy. At a time when the average earnings of college graduates is twice that of workers with only a high school diploma, higher education is the clearest pathway into the middle class.
However, the cost of college is putting an affordable education out of reach for too many Americans. Access to higher education today has become increasingly expensive for families:
Reductions in state funding and support for institutions are making the college cost problem even more challenging, forcing students to absorb cuts through higher tuition prices and significantly increasing the extent to which students must rely on loans to finance postsecondary education.
In order to ensure more hard working and responsible students have a fair shot at an affordable higher education, President Obama is calling on states, colleges and universities, and Congress to act to curb rising prices and make higher education more affordable for all Americans.
President Obama is Calling on Congress to Stop Interest Rates
From Doubling on Student Loans:
Americans now owe more tuition debt than credit card debt, and student loan borrowing is more common now than it was a decade ago. At a time when the average student loan debt is $25,000 and tuition prices continue to rise, students are borrowing more than ever to complete their degrees.
On July 1, 2012, the interest rates on subsidized Stafford student loans are slated to double from 3.4% to 6.8%. To out-educate our global competitors and make college more affordable, Congress needs to stop the interest rate on these student loans from doubling.
If Congress doesn’t act before July 1, 2012, interest rates on loans for over 7.4 million students will double. And for each year that Congress doesn’t act, students rack up an additional $1,000 in debt over the life of their loans.
As he did in his State of the Union address, President Obama is calling on Congress to put forward legislation to stop interest rates from doubling. The President is calling on Congress to reward hard work and responsibility by keeping interest rates on student loans low so more Americans get a fair shot at an affordable college education, the skills they need to find a good job, and a clear path to the middle class.
Ensuring American Students have a Fair Shot at an Affordable Higher Education
Higher education is not a luxury: it is an economic imperative that every hard working and responsible student should be able to afford. President Obama has emphasized that the federal government, states, colleges, and universities all have a role to play in making in making higher education more affordable, by reining in college costs, providing value for American families, and preparing students with a solid education to succeed in their careers. The President is calling on Congress to advance new reforms to give more hard working students a fair shot at pursuing higher education:
Building on Landmark Federal Investments to Make Higher Education More Affordable
The President has set the goal for the U.S. to be first in the world in college attainment by 2020. To achieve this bold goal for our nation’s future and to prepare students to compete in the 21st century global economy, the Obama Administration has championed landmark investments in student financial to make college more affordable for all American families: