The quagmire that is student loan debt has finally surpassed credit card debt in America. We’ve heard a lot about what this level of debt means to college graduates, drop-outs and families but now we’re going to dig a little deeper into the “loan” part. What a student signs up for looks, feels and sounds like a loan…but doesn’t fine-print like a loan. Decisions made by congress in recent decades have rendered traditional loan safeguards such as bankruptcy filing, inaccessible to borrowers. David Dayen is a freelance writer and contributor to salon, where we found his article, “Your Student Loan Isn’t Really a Loan.”
Senator Jeanne Shaheen and New Hampshire Community College Chancellor Ross Gittell are calling on Congress to hold down interest rates on school loans. The rates are scheduled to double for new federal subsidized Stafford loans on July first.
Student loan debt as a campaign issue: this week, President Obama visited college students in Colorado, North Carolina and Iowa and made urgent appeals to keep interest rates low for current and future college students. The house will vote Friday (4/27/12) on legislation that could keep the interest rate on government-subsidized undergraduate student loans from doubling in July.