Keeping Student Interest Rates Low
Taking out Stafford Loans to help pay for college?
On July 1, 2013 interest rates on many new federal student loans are set to double – meaning college gets more expensive and more out of reach for millions of students and middle class families.
Sound familiar? That’s because we did this last summer. When interest rates were schedules to double last summer, students all over the country took to Facebook and Twitter, called on elected officials, and made their simple message heard: “Don’t Double My Rate.” Lawmakers took action and passed a bill to stop that from happening, which President Obama signed it into law last year.
But now, absent further congressional action, the interest rate on new subsidized student loans is scheduled to go up again on July 1, 2013. To stop this from happening, President Obama put forward a long-term solution that cuts rates this year on nearly all new loans, ensures that all students have access to affordable repayment options, and does not charge students higher interest rate to pay for deficit reduction.
Now is not the time to make school more expensive for our young people. As our economy continues to recover – at a time when interest rates are at historic lows -- the 7 million students who rely on these loans to finance their education shouldn’t face higher debt as they work to graduate, start a career or buy a house.
See how many students who go to school in your state would have been affected if interest rates went up in 2012, and how much they will save over the life of their loan under the lower rate.
“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