Keeping Student Interest Rates Low
Taking out Stafford Loans to help pay for college?
Thanks to young people all over the country who made their voices heard, interest rates on student loans will not double this summer.
Rates on Federal subsidized Stafford loans were set to go up on July 1, a change that would saddle more than 7 million students with an average of $1,000 each in additional debt. But Congress took action and passed a bill to stop that from happening, which President Obama is now set to sign into law.
Today, higher education isn’t a luxury – it’s a necessity that every American family should be able to afford. But it’s also getting more and more expensive. That’s why the President called on Congress to keep interest rates low so that every hardworking student gets a fair shot at the skills and training needed to get a good job in today's economy.
And that’s why students accepted the President’s challenge to speak up about the issue. They took to Facebook and Twitter, called on elected officials, and made their simple message heard: Don’t double my rate.
See how many students who go to school in your state would have been affected by higher interest rates, and how much they will save over the life of their loan under the lower rate that will now remain in place.
“We cannot just cut our way to prosperity. Making it harder for our young people to afford higher education and earn their degrees is nothing more than cutting our own future off at the knees. Congress needs to keep interest rates on student loans from doubling, and they need to do it now.”
—President Barack Obama, April 21, 2012
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