Fox 2 Video: How Should Congress Handle the Student Loan Rate Crisis?
With rates set to double in July, what do you want to see Congress do or debate?
College students and their families have been keeping tabs on Congress for the past few weeks with the possibility of federal student loan rates increasing. If Congress doesn’t act by July, the rates for the Stafford federal loans will go from 3.4 to 6.8 percent. While Democrats and Republicans agree that the rate needs to remain at the 3.4 level, they haven’t agreed on how to get it done. Sen. Roy Blunt (R-MO) publicly stated that he supports a proposal to extend the low interest rates for students, according to Missouri New Horizon. In addition, the article states, “The issue at hand now is how to fund the increase. Republicans are calling to pull the funds from President (Barack) Obama’s health care law, while Democrats want the …
Jim Zemenick
11:29 am on Tuesday, May 8, 2012
Jim Z Today college students are able to borrow college funds at 3.4%. Today Bank of America borrows from Federal Reserve at 1/4 of 1% (.0025). College students use the money to improve their future USA earnings potential by becoming a more educated employee. Bank of America uses funds in a variety of ways including International investing in high risk areas (e.g. Greece). Congress wants to raise… more ›