Rates on need-based loans set to double
Rep. Gwen Moore (D-Wis.) called for the crafting of a long-term solution to student debt Monday, saying it is necessary to deal with “the student debtor crisis” before America as a whole faces dire economic consequences.
“This is a national crisis for everybody, not just student debtors,” an impassioned Moore said in a news conference in the Milwaukee Area Technical College Student Center. “It’s time to take action and stand up not only for these students, but stand up for the American economy.”
On July 1, students attending school on subsidized Stafford student loans — those that are awarded on the basis of economic need — face a doubling of their interest rates from 3.4% to 6.8% if Congress does not act to maintain the current rate. Roughly 7 million students would be affected by the increase. Student debt in total stands at a record high $1.1 trillion, surpassing auto loan, credit card and home equity debt, said Moore, a Milwaukee Democrat.
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