Low Rates Needed For Student Loans: Hi-Line Blog

Our View

No high school senior wants to think about the cost of their approaching college education. We don’t need to be reminded that we’re facing the highest tuition costs in history, the bleakest job market prospects and, on average, over $25,000 in debt after graduation. But despite the temptation to pretend money isn’t real, a recent matter is worth tuning into.

Unless Congress acts fast, interest rates on student loans will double from 3.4 percent to 6.8 percent on July 1 of this year. This will add roughly $1,000 a year over the life of the loans, which, for already financially strained students, may be enough to push some over the edge. President Obama (who only just finished paying off his own student loans eight years ago) has been outspoken about championing to keep interest rates at the current rate, but support must come from all of Congress to block the increase in interest rates.

No matter one’s political party, this legislation will affect college-bound students equally. It’s a no-brainer that student loans should be kept as affordable as possible in this economy. If students are being burdened with such gratuitous amounts of debt, the entire economy will suffer as a result. 

Congress needs to keep our best interest (no pun intended) at heart.