Councilmember Nancy Navarro Urges Public Support for Student Loan Legislation
If Congress does not Act by July 1st, Federal Student Loan Interest Rates will Double, Affecting More than 7 Million Students and Raising College Costs by an Average of $1,000
Councilmember Nancy Navarro was among a select number of community leaders and elected officials to join President Obama in a teleconference last week to discuss a bill that, if not signed into law by July 1st, will double federal student interest rates. Over 7 million students will be affected, raising college costs by an average of $1,000.
Unless Congress reaches an agreement, the interest rate on Stafford loans will double from 3.4 percent to a 6.8 percent, raising the cost of college education for millions of young students who depend on these loans. On the call, President Obama said that we cannot place this additional burden on young Americans who are experiencing historic levels of student loan debt.
Tuition and fees at public four-year colleges and universities has increased approximately 72 percent since 2001. Given the current economic climate, the need for Congress to act is imperative.
Under President Obama's student loan plan, borrowers would be able to consolidate their loans into one monthly payment, which makes borrowers less likely to default. In 2010, Congress voted to cap monthly payments at 10 percent of discretionary income and provide debt forgiveness after 20 years beginning 2014. President Obama's "Pay as You Earn" proposal would adopt these new changes effective this year.
Councilmember Nancy Navarro agrees that Congress must act on behalf of millions young students who would benefit from the approval of this bill. "If Congress does not act this week, millions of students across the country will see their interest rates double. I urge students and parents in Montgomery County and across the nation to contact your member of Congress and insist they act immediately."
Those interested can contact their member of Congress by emailing or calling their elected officials; sharing this information with friends and networks; and using social media as a tool to reach a greater audience.The President also encouraged Twitter users to tweet #DontDoubleMyRate to friends and elected officials.
Find more information at http://www.whitehouse.gov/dont-double-my-rates