Preventing College Costs from Rising

News

Preventing College Costs from Rising

Loveland Magazine – Justin Kuemerle, a Wright State University student, relies on federal student loans to help pay for school.  He recently told me that without Stafford Loans, he would have to forgo college.

Justin is one of more than 382,000 students in Ohio – including some 46,959 in Hamilton County – who are able to attend college with the help of Stafford Loans. Stafford Loans – low-interest loans for low-to moderate-income students, provided by the U.S. Department of Education – assist undergraduate and graduate students who could not otherwise afford college.

But, unless Congress acts soon, on July 1st the interest rates on these vital student loans will double for Justin and nearly 8 million U.S. undergraduate students nationwide.

That could mean an increase of about $1,000 in interest payments for borrowers simply because Congress refuses to take action and stop the Stafford Loan rate hike.

Ohio college students can already expect to graduate with about $27,000 in student loan debt.  A recent report shows that student loan debt nationwide has reached about $870 billion, which exceeds debt on credit cards and auto loans.

Read the whole article »