Americans now owe $1 trillion in loans for their college educations – more than what we all owe on credit cards. Students and their families are taking out loans in record numbers because the cost of college has skyrocketed, leaving those grads with loans averaging $25,000 in debt. Talk about starting your career in a hole!
To make matters worse, unless Congress acts soon, the interest rate on federal subsidized loans will double from 3.4 percent to 6.8 percent on July 1st right in time for this year's crop of high school grads and any college student who takes out a new loan. That could add thousands of dollars to a student's college debt.
Congress needs to move quickly to reach a bi-partisan agreement to keep the interest rate where it is. Tell your representatives in the Senate and House to support this common-sense effort to keep higher-education costs down.
Subject: Don't Double Student Loan Interest Rates!
Dear [Decision Maker],
In this economy the last thing Congress should do is make a college education more expensive. Yet unless you act by July 1, the interest rate on federally subsidized student loans will double -- adding thousands to the cost of a student loan! Please support legislation to keep interest rates where they are, and keep college costs down for hardworking families.
Student loan debt is being called our next great financial crisis. Because of rising tuition costs, students and families are increasingly forced to turn to loans to finance higher education. With more than $1 trillion due -- surpassing what Americans owe on their credit cards -- all this debt is hurting our economic recovery.
Students who take out loans now leave college $25,000 in the hole, and parents face an average of $34,000 of loan debt, making it harder than ever to save for a down payment, qualify for a mortgage or expand a small business.
Doubling the interest rate for subsidized Stafford student loans at this critical time in our economy just doesn't make sense. Please support keeping interest rates at today's level, making a college education more affordable for struggling Americans.