Last year, just before the deadline, a bipartisan deal was reached which prevented interest rates from doubling from 3.4% to 6.8% on federally subsidized student loans in the United States. This year however, another extension could not be reached, causing interest rates for new borrowers to double on July 1st.
Federally subsidized student loans are awarded to those who demonstrate financial need and the interest is paid for by the Department of Education while a borrower is in school or when loans are placed in deferment. Now, with interest rates doubling, over seven million students, will have to pay an additional $1,000 a year on their student loans. Today, the average student loan debt for American graduates is more than $27,000 and this will only cause this number to increase even more.
For months, organizations such as StudentDebtCrisis.org, Young Invincibles, OurTime, Campus Progress and others have rallied people nationwide to take action and urge Congress to reach a deal which would keep interest rates low for student borrowers. Instead of listening to the countless people that contacted their representatives, Congress allowed the interest rates to double, and then left for vacation.
Tomorrow, 4th of July parades will take place all over the United States and legislators will surely attend many of these local festivities. For this reason, StudentDebtCrisis.org is asking asking everyone to show up at local 4th of July parades and events and to get the attention of elected officials about the student debt crisis and the doubling of interest rates.
To get the attention of elected officials, concerned citizens and student borrowers are encouraged to bring signs and banners. Then, take photos from the events showing your sign and share them by uploading them at http://studentdebtcrisis.org/fourth-of-july-day-of-action1/.
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[…] This blog post also appeared in the International Political Forum. […]