By Justin Albright Posted May 30, 2012
College – One of the most exciting and expensive times of your life. Yet, as fun as college might be, it’s also one of the most, if not the most expensive time of your life. For those of you who already believe that college is expensive, the cost of the Stafford student loan could possibly double in expenses in the next year for approximately 7.4 million students. Better buckle down on all those scholarships seniors.
Usually, the interest rate on the Stafford Student loan is 3.4% but unless the government doesn’t act fast, the interest rate will double to 6.8% by July 1. Crazy enough, both presidential candidates agree that something needs to be done about this. Unless Congress steps in and does something about it, you seniors better be prepared to empty your wallets this upcoming year. The house republicans have been under pressure from President Obama to set a vote for July 1.
President Obama is critical of the increase, as he is constantly putting pressure on the Republicans to halt the increase. Democrats and Republicans both agree that the student loan increase is wrong but they can’t agree on an acceptable price. The president is going to several colleges and talk shows to try and let the nation know that he is trying to do something about it.
On May 8, according to CBS News, Senate Republicans blocked a bill intended to extend low the low-interest rates for student loans. In a 52-45 vote, the Republican Senators blocked further work on the “Stop the Student Loan Interest Rate Hike Act of 2012,” which was a democrat sponsored.
So you seniors that are planning to go to college better hope that congress passes a deal, or else your wallets and piggy banks will be empty very soon.