Student loans to double?

Congress is literally days away from allowing federal student loans rates to double, specifically the subsidized Stafford student loan. Thought we were broke while in college, wait until we graduate and left to pay off these loans. Rates are said to raise from 3.4% to a whooping 6.8%  which will affect over 7 million students

President Obama has been speaking to students across the country, urging them to reach out to their congress members to vote against this bill. President Obama stresses the importance of a college education and believes that the hard work of students should be paid off, not a debt. Americans owe more in student loans than in credit card debt. The rise in tuition prices is making it more difficult for those in low income households the opportunity to attend school. President Obama states, "Higher education cannot be a luxury reserved just for a privileged few. It is an economic necessity that every family should be able to afford.” You can join the President's efforts by finding your local congress member and contacting them before the July 1st deadline.

Financial experts do say that this increase will more than likely not have the effect people are expecting. The increase would cause a $5000 increase in repayment over a 10 year payment, equaling out to about $40 increase a month. This would hardly discourage the amount of borrowing, but is also another hurdle for those with low incomes to climb in order to attend school. An increase of any kind will discourage borrowing for some and cause a decline in attendance. Tuition increases every year while the aid amount slowly declines. There is a direct correlation with the rise in tuition to the fall in graduation rates, making it more and more difficult for students to pursue a degree. 

Whatever political side you are on, it is important to know the facts and learn about the issues that affect you. Students make up a large part of the voting population. Make sure to register to vote for this upcoming election. Make your voice heard or don't complain about the outcome!