President Obama Calls on Congress to Prevent Student Loan Interest Rates from Doubling

“In America, higher education cannot be a luxury,” President Obama said in his weekly address. “It’s an economic imperative that every family must be able to afford.” At a time when higher education has never been more important, the President is calling on Congress to prevent student loan interest rates from doubling for more than 7.4 million students this summer. Without action, the average borrower will see an average of $1,000 added to their debt.

Watch the address:


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11 Comments

  1. He should stop reading the text from the screen but say it with his own words! Fake!!! I don’t think he really realize what he is saying. Very sad

  2. What is the source of the money that would be used for the new subsidized Stafford loans and what entity actually receives the 3.4% government subsidy. If the loan funds come from our taxes, there should be one or more line items in DoEd “budget” identifying those funds. And if the loan funds are in the “budget”, students are paying interest and principle to the US Government and when the principle and interest are paid back to the government doesn’t this result in a profit based on the interest (less administrative costs) and thus how does the 3.4% interest paid by the government (to some entity) result in $6B deficit (over the 10 year pay back period of the loan).

  3. Maybe whoever wrote this story should ask for a refund of their tutition that was paid for English classes?

    ‘Without action, the average borrower will see an average of $1,000 to their debt.’

    What is that sentence supposed to say?

    • Jonathon – thanks for pointing out the missing word. It’s corrected now.

      Cameron Brenchley
      Office of Communications and Outreach

  4. You cannot go to college without thinking “can I get a job with this major?”

    many students have majors that do not equate to paying jobs. Its awful. but true

  5. College Tuition is too high. As part of fixing Student Loans the Interest Rates should be Indexed for Students attending Colleges and Universities that keep costs down and LOWER their Tuition below Inflation rates each year or charge less than the National Average for College tuition each year. This way HBCUs and UNCF schools and other private schools that already keep costs low will be rewarded by having students pay much lower interest rates for attending these cost efficient schools and the competition will help everyone to save and keep tuition down. Students should pay lower student loan rates for choosing to go to cost saving Colleges that don’t raise tuition above inflation rate. Tie the Student Loan Rates per student to the Rate of Tuition Decreases each year at the school they attend. Incentivize Tuition Decreases and Stability below rates of inflation by indexing Student Loan Rates per School costs. The higher the Tuition, the higher the Student Loan rates, the lower the tution, the lower the student loan rate. Schools that lower tuition or reduce increases can earn lower rates.

  6. I am here to say that I am very surprised that all colleges have not had petitions out for students to sign in opposition to our Federal Loan interest rates doubling starting July !st, 2012. I was just on the phone with the financial aid office at my college asking why they have not had any information about this posted. I would happily sign a petition opposing this. College is expensive enough with out the Government applying higher interest rates on the loans we receive from them. The current rate on one of my loans is 4.6 percent, doubled it will be 9.2 percent or higher and that is not acceptable for me. I was considering going on with college to obtain my Bachelors Degree after I receive my Associates; however my loans are now coming due and I am finding my repayment cost to be more than I can afford now. 189.00 dollars a month is more than I can afford. While I am in the process of trying to deal with this situation, the Federal Loan people want to double the interest rates??? What on earth are they thinking? We are trying to update our skills to be able to try to find work in this Country. The economy is not helping matters and most of us will be lucky to find work when we finish College. Attacking College Students who are trying to be better people and better workers is NOT the way to get more Government funds. I am highly opposed to this and I wish there were petitions out there for us to sign. Thank you for your time. Cindy

  7. I’m a widowed mother who is now trying to pay off a Plus loan that I signed for in 1991. The original loan was $9,913.81. With all of the trouble that my son and I have gone through, forebearances and deferrments. His lay-offs, bad jobs, low paying, etc etc etc The loan is now a whopping $15,904.34. I am retired, living on Social Security and 2 small annuities. My son can’t get a job that pays anything. We are at our wits end. Tell me something good. I don’t qualify for any new programs, like $0 balance Income Based Repay or anything else. The interest has passed the entire original loan amount. I’m old and decreped & sick. Tell me your problem again!

    • Your problem is not unique. I feel for people like you because I know what it feels like to be in debt. We keep hearing new ideas/schemes from everyone which either make the situation more complicated or offer empty promises of debt forgiveness which is not fair at all, just like TARP was not fair to those banks that were responsible by rescuing those that were not. The only way out of this mess is to turn this economy around by voting for a new President and Senate that believe in free markets so we can all go back to finding good jobs that allow us to pay the loans back, which is the only fair way to everyone.

  8. Sir/Madam:
    The problem with getting a higher education in the United States is that it is difficult to get a good job. How can a PhD, or a masters degree student be interviewed by a high school graduate for a job? Also, most private university colleges delay graduation programs just to get more financial aid from the students; while the student loans go so high that no one cannot afford to pay in the future. Most Americans will surely go to find jobs in other countries simple because education is no more respected in this country.
    Teaching is the best way for any educated person to join, but as a black man, to be accepted in any teaching position by the state’s educational institutions, has also become a problem – simple because you are black and educated. Racism can be seen in all aspects of human existence in this great country of ours today.
    Thank you…

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