Friday, June 07, 2013

pay me now or pay me later | US student loans at the crisis point

graphic by John Uebersax
This year, student loan debt exceeded $1 trillion as the price tag on higher education has risen more than 1100% since 1978.

On Thursday, Senate Republicans blocked a vote on the Reed-Harkin Student Loan Affordability Act—legislation that would freeze federal Stafford student loan interest rates at 3.4% before the big July 1st deadline.

Massachusetts Senator Elizabeth Warren points out that, "...right now, a big bank can get a loan through the Federal Reserve discount window at a rate of about 0.75%. Those are the same big banks that destroyed millions of jobs and nearly broke our economy."

I'm convinced we ought to, at the very least, freeze student loan rates where they are. 

Even better, I support Senator Warrens legislation to give students the same deal we give to the big banks: the Bank on Students Loan Fairness Act — in fact, I'd like to see that made permanent.

If you like the idea, you can add your voice right here.

New college graduates can't feed the real economy if their contribution is preempted by overwhelming debt — meaning, if these 80MM Americans can't participate, we can't grow.

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