http://barrington.patch.com/...
Reed warned students at Roger Williams University about student loan interest rates rising in July unless Congress takes action:Noting that more than 45,000 Rhode Island college graduates would face higher costs because of a scheduled doubling of the interest rate on student loans, U.S. Sen. Jack Reed told current students at Roger Williams University on Wednesday, May 1, that he is working to avoid the hike."They rely upon this need-based financial aid in order to make it through school, and we are at a moment in history where we need all the talent and all the educated men and women that we can muster," Reed said in a speech at the Global Heritage Hall Atrium just before noon. "The reality is that, students today are graduating with tremendous debt. It's not only affecting us from an educational standpoint, but from a macroeconomic standpoint."
Reed explained that he is working with Senate colleagues to pass a bill that would freeze the interest rate for two years to avoid the July 1 increase and to give Congress time "to work out a long-term solution." - Barrington Patch, 5/2/13
http://bristol-warren.patch.com/...
According to a release provided by RWU, the average college graduate in 2007 carried about $17,000 in debt; in 2012, that number was $27,250 — a 58-percent increase. - Bristol-Warren Patch, 5/1/13Reed has been looking out for college students and has been pushing a bill to help ease the burden for college graduates:
http://news.providencejournal.com/...
You can read the bill here:Last year, Senator Reed led the successful effort in Congress to freeze interest rates for need-based federal student loans, preventing them from doubling for a year.Today, the current fixed interest rate on federal Stafford subsidized loans is 3.4 percent, but that rate will double to 6.8 percent on July 1, 2013.
Reed's Student Loan Affordability Act of 2013 would lock in lower rates for two years while Congress works on a long-term solution to slow the rapid accumulation of student loan debt. - Providence Journal, 5/1/13
Here's some more info from Reed's website:
http://www.reed.senate.gov/...
if you'd like to get more info on the Student Loan Affordability Act of 2013, please contact Senator Reed's office for more details:Senator Reed is also leading efforts on a plan to overhaul the mechanism for setting interest rates on federal student loans to help ensure students can benefit from the lowest interest rate the federal government can offer, while also ensuring taxpayers that the program covers its costs.“We need to rethink the federal approach to providing student loans. There are sensible, fiscally-responsible steps we can take to make our financial aid system more effective, affordable, and sustainable in the long run,” said Reed. “I am working on new legislation that would cap interest rates and base them on actual costs of operating student loan programs.”
Research by FICO Labs found that in 2005 the average student loan debt was just over $17,000. In 2012 it rose above $27,250 – a 58% increase in just seven years.
The ballooning student debt rate is creating a drag on the U.S. economy. As student loan debt has risen, home ownership and car ownership have declined for young households. Keeping the cost of borrowing low will help reduce the amount students owe and help give them purchasing power that can improve our overall economy.
Reed urged students at Roger Williams University – and at colleges and universities throughout the country -- to take action and urge their lawmakers to address the student debt crisis.
“I hope we can get bipartisan cooperation this year,” Reed concluded. “And I am hopeful because of the young people who are here today and the millions of Americans around the country who agree that this is the right thing to do. I urge you to use your voices – and your social media skills to encourage Congress to act.”
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