Monday deadline: Student loan rates set to double

student loan rates set to double?The President has said it. Senator Elizabeth Warren’s (D-MA) first stand-alone piece of legislation says it. Students around the nation have said it. The ‘tax man‘ and numerous economists have said it. But Congress doesn’t seem to get it, so let’s repeat it.

Without congressional and presidential action prior to Monday, interest rates on student loan will double. It doesn’t take an economist to understand that it would have an adverse impact on a nation already struggling to emerge into better economic territory.

Student loan debt is approximately $986 billion and will only get worse in the face of markedly increasing tuition rates. And, while the economy is getting better in some respects, job outlooks for new graduates isn’t where it needs to be to wipe out the staggering levels of debt.

What are our elected officials going to do about it? Apparently nothing. The Senate failed to reach an agreement on keeping Stafford student loan rates at their current 3.4% before breaking for the July 4 holiday. The only hint of hope was when GOP Senator Lamar Alexander (R-TN) hinted that lawmakers could still reach an agreement that would negate the increase retroactively.

Sure…they’ll stop bickering long enough to get this done, right?

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