Udall Calls on Senate Colleagues to Act Before College-Loan Interest Rates Double
Press Release
With President Obama slated to be in Boulder tomorrow to talk about college-loan interest rates, Mark Udall today called on his Senate colleagues to keep the interest rates on federally subsidized student loans from doubling this summer and raising the cost of attending college for thousands of Colorado students. If Congress does not act before July 1, the current rate of 3.4 percent on Stafford loans will increase to 6.8 percent, adding as much as $2,800 to the total cost of college.
"It's unacceptable that Congress would hand out taxpayer dollars to big oil companies, and then tell students that we cannot afford to offer them reasonable financing for their education - it just doesn't make sense. Student loans play a crucial role in making higher education possible for thousands of Coloradans, and doubling the interest rate cuts their legs out from under them," Udall said. "It makes it that much harder for Coloradans to go to college and they start their careers with even more debt hanging over them. I will keep working with my Senate colleagues to find a way to pay for this important investment well before the July 1 deadline - Americans who want to go to college depend on it."
The subsidized Stafford loan program helps many middle- and low-income families afford college by giving students a reprieve from paying back the loans while in college or for a six-month grace period after graduation. Just recently it was reported that the national student loan debt reached the $1 trillion mark, surpassing the national credit card debt. At a time when students are facing sharp increases in tuition and an uncertain job market after they graduate, an increase in the interest rate could further deter many students from taking on the cost of a college education. Udall and his colleagues are looking into legislation to help prevent students from having to take on an even bigger burden of high interest rates. If the current rate expires in July, students currently in or just starting college would have to pay back their loans at the higher rate.
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