‘Clock is ticking’ on student loan debt crisis

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‘Clock is ticking’ on student loan debt crisis

The OSU Lantern – With graduation day less than a month away, many Ohio State students are looking toward the future.  But what used to be a periodic reminder of student loan debt in the form of monthly statements and a bleeding bank account, has been a constant political issue, almost impossible to avoid.

Student loan debt has surpassed the $1 trillion mark, and President Barack Obama and Republican presidential frontrunner Mitt Romney have campaigned to keep student loan interest rates low, bringing student loan debt to the political forefront.

The first attempt to freeze federal interest rates for student loans at 3.4 percent was shot down in U.S. Senate May 8. Federal student interest rates are still set to reach 6.8 percent if Congress takes no further action until July 1.

Senate Republicans overpowered a Democratic proposal to end a tax break for the wealthy to keep the student loan interest rates down. However, Republicans want to avoid raising the rate on the loans. They have said the money should be brought in by eliminating a public health fund created by Obama’s new health-care law.

Sen. Sherrod Brown (D-OH) said he does not agree with the idea of eliminating the public health fund during his visit to OSU’s campus on May 5.

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