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Student loans have been in the news recently, and as someone who is in the target demographic for that debate, I have been paying attention to what’s going on (or at least have been trying to)—easier said than done. Something that seemed like sort of a no-brainer has turned into something that directly affects anyone who has, or will have student loans, so I thought I would share with y’all.

What: The Stafford Loan is a loan eligible to students who are attending university in the United States. These are THE student loans that everyone complains about after graduation. Something special about these loans is that the U.S. government guarantees them—so even if the student defaults on their payment, the bank is still getting paid. These loans are typically offered at a lower interest rate…typically.

Who: Congress. About two-weeks ago, the interest rates on Stafford loans doubled from 3.4% to 6.8%, costing students anywhere from $2,000 and up…something that really matters to people who are trying to maintain a budget (aka every college student ever). It is important to note that this current increase doesn't affect those who already have a loan taken out, their interest rates will stay the same.

Democrats: Want a cap placed on the interest rates to ensure education is attainable to all (but where would we get the money from in our cash-strapped government?)

Republicans: Do not want more government spending (in this instance it would prevent the hike in rates)

Both sides have very good points and it’s up for the members of congress, and their constituents to decide. To find out ways to contact your congressmen (either telling them you want the rate decreased, increased, free college education, etc.) click the link below! 

http://www.usa.gov/Contact/Elected.shtml
 


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