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College Loan Rate Could Double Next Month

durbin.senate.gov

U.S. Senator Dick Durbin says the college student debt situation is "bordering on a crisis," and Congress should act soon to prevent it from getting worse.  Durbin points out the rate on federally-subsidized Stafford college loans is set to double on July first.

Durbin says more than 350,000 Illinois students would pay an extra $1,000 for each loan if that happens, which he says is unfair for students and their families.

"We know that their success is rooted in higher education and getting a degree. They're doing the right thing, they're going to school. But the cost of it is getting far beyond the average working family, certainly beyond any student." - U.S. Senator Dick Durbin

Congress acted last year to prevent a similar hike from occurring.  One study shows the average student graduates owing more than $26,000.  If the rates go up, the federal government could reap another $6 billion from loan payments.  Durbin says the government already makes billions from student loan interest.