Welcome to the American Student Loan Crisis of 2013.
If Congress doesn’t act by July 1st, the interest rate on Stafford Loans will double from 3.4 percent to 6.8 percent.
Instead of addressing this impending increase that hurts American students, the Republican plan actually makes it worse. In just five years, under the Republican plan, loan rates will rise 7.7 percent.
More than 38 million Americans have outstanding loan debt, totaling almost $1 trillion dollars. The Democratic plan keeps Stafford loan interest rates at 3.4% to ensure that cost is not a barrier to accessing higher education.