Don't Let Congress Double Student Loan Interest Rates

Joe Courtney's Bill, H.R. 3826, calls for maintaining interest rates on Subsidized Stafford Direct Student Loans(federal loans) at 3.4%. If this bill is not passed by July 1, interest rates will double to 6.8%. For students who take out the maximum yearly loan of 23,000, they will incur an additional $11,300 of student loan debt if the loan repayment period is 20 years. In a time when higher education is extremely important in finding a secure job, students who challenge themselves and value education should not be punished with higher interest rates and greater student loan debt.

In 2007, the College Cost Reduction Act slowly decreased the interest rate on Subsidized Stafford Direct Student Loans from 6.8% to 3.4%. This was an outstanding achievement, providing relief for the 10 million students who take out Stafford Student Loans each year. This was a 5 year plan and is set to expire on July 1st 2012. Students all around the U.S. will be hurt, unless congress acts.

A college education is a worthwhile investment and the data supports this conclusion:

Unemployment rate of people not finishing High School: 16.5%
Unemployment rate of people finishing High School:10.7%
Unemployment rate of people completing some college: 8.5%
Unemployment rate of people completing college or higher: 4.5%

Keeping kids in school and allowing them to pursue their potential will promote a more solid work force.

Increased college dropout rates directly correlate with the threat of student loan debt. College dropouts face reality without a degree or a way to pay off their student loan debt.

In 2011, student loan debt exceeded credit card debt, the first time in history. This unprecedented landmark serves as an indication of the struggle that middle and working class families are going through for wanting to give their children a quality education.

Being denied the advantageous possibility of attending college has its lifelong negative effects. Without financial support, students are left behind, not encouraged to strive for excellence. In the 1980's the U.S. was first in college graduation rates, but now has fallen to 12th internationally.

After college, people are overwhelmingly indebted. In a time when high paying jobs are not easy to land, recent graduates settle for lower paying jobs. These graduates, getting paid less than what their college degree should earn them, are unable pay off their debt.

What happened to the “American Dream” in which all citizens could succeed?

Passing this bill would allow students to feel less worried about their student loan debt following their studies. This is a step to prevent an even wider achievement gap between the very wealthy and the rest of the population.

Please help congress make the right decision as it is in our nation’s best welfare.