Student Loans: Yes, There's Even More Bad News

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Hey, college students!

If you weren't already bummed that 53 percent of you will likely face joblessness or underemployment upon graduation, or that university is a big waste of time and money, we have even more bad news for you.

Unless Congress gets its shit together -- which it probably won't because it's Congress -- interest rates for federally backed Stafford loans will totally swell from 3.4 percent to 6.8 percent July 1, according to the Associated Press.

For some 7 million U.S. undergrads, that means that tuition would go up $1,000.

Both Barack Obama and Mitt Romney have made stump speeches on the issue to students and reporters, promising that things must change.

(Because more promises that go nowhere are just what we need when student loan debt has exceeded $1 trillion, more than credit card and car debt.)

Anyway, the AP gives a good idea of how much a problem this is: because student loan debt is still growing, it can put economic recovery at risk.

No surprise here, but the legislators who could fix the situation are wavering, telling reporters that they must contend with an "untenable situation" -- between increasing interest rates or further burdening taxpayers.

What's truly untenable, though, is that instead of finding a real solution for students, the most viable idea on the table is a short-term fix -- to temporarily extend the 3.4 percent rate.

Follow Victoria Bekiempis @vicbekiempis.

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3 comments
staci mcnulty
staci mcnulty

Having endured my own student loan fiasco, I think we need to do a much better job of counseling students about the amount of debt they could be incuring, versus their earning potential. Students who are getting degrees in low paying fields my want to rethink their choice of major, or the amount fo debt they allow themselves to take on.  student loan

Same Day Loan
Same Day Loan

 Many students apply for student loan to decrease their regular. You can sometimes decrease the money you pay in college pupil education loans each month by consolidating your debt. You'll have more money to apply to other bills if you are able to save on your education loan repayments each month.

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