Saturday, April 21, 2012

Student Loan Payments could double by July 1st


DEBT: Student loan payments could double

1:00 PM, Apr. 21, 2012  |  
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President Obama kicked off a week of appeals to young voters on Saturday by urging Congress to maintain the interest rate on student loans, keeping the costs of college stable.
"If Congress doesn't act, on July 1st interest rates on some student loans will double," Obama said in his Saturday radio address. "Nearly seven-and-a-half million students will end up owing more on their loan payments."
The rising cost of college is threatening to lock out potential students, undermining U.S. competitiveness with other nations in the global economy, Obama said.
"In America, higher education cannot be a luxury," he said. "It's an economic imperative that every family must be able to afford."
The appeal comes just days before a presidential trip in which Obama visits the universities of three key election states: North Carolina at Chapel Hill, Colorado at Boulder, and Iowa at Iowa City.
The president's radio address:
Hi. This week, I got the chance to sit down with some impressive students at Lorain County Community College in Ohio. One of them was a woman named Andrea Ashley. Two years ago, Andrea lost her job as an HR analyst. Today, she's getting certified in the fast-growing field of electronic medical records. Before enrolling at Lorain, Andrea told me she was looking everywhere trying to find a new job. But without a degree, she said that nobody would hire her.
Andrea's story isn't unique. I've met so many Americans who are out there pounding the pavement looking for work only to discover that they need new skills. And I've met a lot of employers who are looking for workers, but can't find ones with the skills they're looking for.
So we should be doing everything we can to put higher education within reach for every American -- because at a time when the unemployment rate for Americans with at least a college degree is about half the national average, it's never been more important. But here's the thing: it's also never been more expensive. Students who take out loans to pay for college graduate owing an average of $25,000. For the first time, Americans owe more debt on their student loans than they do on their credit cards. And for many working families, the idea of owing that much money means that higher education is simply out of reach for their children.

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