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Senator Schumer Encourages Support of Low Interest Rate Student Loans

by on April 17, 2012

On July 1, students currently in college or about to begin college could see a serious rate increase when it comes to student loans. One senator, though, is hoping to keep that from happening. A new bill by Democratic Senator Charles Schumer would keep the interest rate on federally subsidized Stafford loans to a rate of 3.4%. On July 1, the rate is scheduled to go up to 6.8% when a provision passed in 2007 authorizing the lower rate expires.

This week, Schumer organized a news conference to help raise awareness of the coming storm. Because student loan debt now exceeds the credit card debt of most students, he won’t have trouble reaching many people.

Schumer’s idea is to keep the rates low while closing corporate loopholes in the tax code to make up for any lost revenue. Over the past fifteen years, the total student loan debt has increased about 14 times to a total of $1 trillion.

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