Banks only pay a 0.75% interest rate, while students will pay 6.8%. If the government is going to invest in the country, it should be investing in its future, and the future is its students. Already University is becoming an impractical option for many families on low incomes, and the higher interest rates will only saddle them with more debt.
Students deserve an affordable education. About half of bachelor’s degree recipients who graduated with student-loan debt had a subsidized Stafford loan. Of these, “70% come from families who make less than $50,000 (FinAid).”
We ask the Obama administration to give government loans to students at the same flexible interest rates that banks receive. University is expensive, but together we can help make it just a little more affordable.