This week, college students delivered 130,000 letters to Congress telling them not to increase the Stafford loan interest rate, which is currently scheduled to jump from 3.4 percent to 6.8 percent on July 1.
If you’re unfamiliar with the Stafford, it is a loan that college students get directly from the federal government. Its fixed interest rate means it’s a better option than a private loan.
Keeping the Stafford’s interest rate at 3.4 percent would save the average student-borrower more than a thousand dollars. However, the Congressional Budget Office says it would cost the government $6.7 billion a year to do so.
Check out the full story on the Chronicle of Higher Education.
What do you think? Would a low interest rate on the Stafford be a good investment for the U.S.? Weigh-in below!
Comments