In 2007 Bill H.R. 3826 was introduced our system to keep the interest rate for federal Direct Stafford Loans, the most common student loan granted in America, at a moderately affordable 3.4 percent. Unfortunately Bill H.R. 3826 is set to expire on July 1st of 2012, which would double the interest to a new rate of 6.8% as proposed by the United States Congress. Congress seems to think that it’s okay to deplete national debt by piling debt on their citizens, but common sense should tell you that’s a plan for disaster.
$ All Time High Living Expenses $ + $ New 6.8% Interest $ =
$$Opening More Lines of Credit$$
$$Opening More Lines of Credit$$ + $$$New Credit Lines Interest$$$ =
↓↓A Weakened Economy↓↓
I don’t know about many of you, but I personally can’t afford to pay another petty tax that goes to someone’s pocket other than mine. Let me break the 6.8% down for you. If you take out the maximum loan of $23,000, over the course of 10 years, you will end up paying an additional $5,000… Now Every 20 years that $5K turns in to $11,000. They also plan to cut $8 billion out of the Pell Grant program for low-income students and reduced the income threshold for eligibility for a full Pell Grant. Get the big picture? This is going to cost us as a whole, the student population, hundreds of billions of dollars.
One more thing you should know, Congress hoped this would pass right under your nose. What makes this situation even worse is all of those billions of dollars we were talking about, remember? More than likely it won’t be going to pay off our national debt, as is currently intended. Instead, we in the US have what we call, “Wall Street Investors”, and a majority of that money will more than likely go to them or in the pockets of that 1% in America. That’s how our system has always worked, “The more you pay, the more debt you gather.” Sounds a bit odd doesn’t it?
This is a petition for the student working two jobs, wondering what they are going to put on the table for dinner, and the student who worries about making payment on their next tuition bill on time, only paying the interest. I could go on with the countless situations that many students are currently in. This just goes to show that our plates are already full. We can’t take much more on. Make your voice heard by signing our petition to Congress. We must act now if we want change in Congress. We're going to have to let them know that this whole War on Youth business is pure idiocy. This is the land of opportunity, and we need to keep it that way for the generations to come.