According to a recent article from the Huffington Post, tuition rates at four-year colleges and universities have risen over 32 percent in the last decade, and last year Americans took out more than $100 billion in student loans for the first time in our history. Student loan debt now exceeds credit card debt in the United States, creating an immense burden that will last years after graduation.
The problem will only get worse if Congress does not act soon. On July 1, 2012, student loan rates on subsidized Stafford student loans — one of the few programs that is affordable for students and families — will double, from 3.4 to 6.8 percent. In no uncertain terms, this would be another hit to middle-class and working-families, and a de facto tax increase on as many as 10 million people.
According to the non-partisan U.S. Public Interest Research Groups (PIRG), if Congress does nothing, borrowers taking out the maximum $23,000 in subsidized student loans will see their interest balloon by an estimated $5,000 over a 10-year repayment period and $11,000 over a 20-year repayment period.
Making college more affordable is one of the best investments our nation can make in America’s economic future.Â Call/write your Congressman!