Interest rates on federal Stafford and Student Plus loans should be eliminated. Those loans currently in repayment, deferment, or default should have the interest recalculated to reflect this change.
Why is this important?
Students and graduates are saddled with high interest rates on Stafford and Student Plus loans: up to 8..5%. Students will be in debt for years to come. Eliminating the interest would be an economic stimulus, increasing consumer spending as well as helping the housing market by freeing up money. If something isn't done the student loan situation could become the next economic crisis.
