News / USA

Millions of US Students Face Higher Costs Unless Congress Acts

Senate Health, Education, Labor and Pension Committee Chairman Sen. Tom Harkin talks about legislation to try and prevent the increase in the interest rates on some student loans,  June 27, 2013, during a news conference on Capitol Hill.
Senate Health, Education, Labor and Pension Committee Chairman Sen. Tom Harkin talks about legislation to try and prevent the increase in the interest rates on some student loans, June 27, 2013, during a news conference on Capitol Hill.
Seven million low-income U.S. college students face higher costs unless President Barack Obama and both Democrats and Republicans in Congress reach an agreement by July. 

Many experts doubt the bickering politicians will act in time to prevent a doubling of the interest charged on education loans for students who need the financial help the most.  This dispute comes as a college education is more important than ever to get good jobs, and college costs are soaring.  

About one-third of college students in the United States rely on low-cost loans that are subsidized by the government.  

Right now, the interest rate is 3.4 percent a year, but it will double to 6.8 percent if Congress doesn't act.   

That could add up to thousands of dollars in additional repayments if low-income college students borrow $20,000 or more for the four years of undergraduate studies.

Spencer Hughes, student government president at Iowa State University, says the higher costs will hurt the students who can least afford it.

"For many of them this assistance is necessary for them to be able to afford a college education.  So there are going to be some serious considerations if it is worth it for me to consider pursuing a degree with this increased burden," said Hughes.

Hughes says students are fed up with politicians who spend their time blaming each other for the impasse.  He says it is time for Congress to do its job and reach an agreement so students know what their costs will be as they pursue higher education.  

The evolving debate includes some who want to extend current rates, while others say it is too costly for taxpayers.  Some want to tie interest rates to market conditions, while others say to do so would be okay if there were an upper limit on rates and a way to set the rate for a term in college.
 
Terry Hartle of the American Council on Education says he hopes the various factions can work out a deal.  He says the issue is important to students and the national economy.  

"Countries with a high percentage of educated and skilled workforce will do better than countries that do not have a highly educated and well-trained workforce," said Hartle.

Hartle says if Congress misses the deadline, members could work out a deal later and set interest rates retroactively.

You May Like

Video Five Patients Given Experimental Ebola Drug Said To Be Improving

Experimental drugs have been tried on six people: three Westerners and now, three African pyhysicians More

Video In Ukraine, Fear and Distrust Remain Where Fighting has Stopped

As Ukrainian military reclaims control of eastern cities residents rebuild their lives, but many say everyone is being treated with suspicion More

Video In Rural Kenya, Pressure Builds Against Female Circumcision

Girls learn to object; FGM practitioners face penalties from jail sentences to stiff fines More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Five Patients Given Experimental Ebola Drug Said to Be Improvingi
X
Carol Pearson
August 19, 2014 11:43 PM
The World Health Organization has approved the use of experimental treatments for Ebola patients in West Africa. The Ebola outbreak there is unprecedented, the disease deadly. The number of people who have died from Ebola has surpassed 1,200. VOA's Carol Pearson reports on the ethical considerations of allowing experimental drugs to be used.
Video

Video Five Patients Given Experimental Ebola Drug Said to Be Improving

The World Health Organization has approved the use of experimental treatments for Ebola patients in West Africa. The Ebola outbreak there is unprecedented, the disease deadly. The number of people who have died from Ebola has surpassed 1,200. VOA's Carol Pearson reports on the ethical considerations of allowing experimental drugs to be used.
Video

Video In Ukraine, Fear and Distrust Remain Where Fighting has Stopped

As the Ukrainian military reclaims control of eastern cities from pro-Russian separatists, residents are getting a chance to rebuild their lives. VOA's Gabe Joselow reports from the town of Kramatorsk in Donetsk province, where a sense of fear is still in the air, and distrust of the government in Kyiv still runs deep.
Video

Video China Targets Overseas Assets of Corrupt Officials

As China presses forward with its anti-graft effort, authorities are targeting corrupt officials who have sent family members and assets overseas. The efforts have stirred up a debate at home on exactly how many officials take that route and how likely it is they will be caught. Rebecca Valli has this report.
Video

Video Leading The Fight Against Islamic State, Kurds Question Iraqi Future

Western countries including the United States have begun arming the Kurdish Peshmerga forces in northern Iraq to aid their battle against extremist Sunni militants from the Islamic State. But there are concerns that a heavily-armed Kurdistan Regional Government, or KRG, might seek to declare independence and cause the break-up of the Iraqi state. As Henry Ridgwell reports from London, the KRG says it will only seek greater autonomy from Baghdad.
Video

Video In Rural Kenya, Pressure Builds Against Female Circumcision

In some Kenyan communities, female genital mutilation remains a rite of passage. But activists are pushing back, with education for girls and with threats of punishment those who perform the circumcision. Mohammed Yusuf looks at the practice in the rural eastern community of Tharaka-Nithi.
Video

Video For Obama, Racial Violence is Personal Issue

The racial violence in the St. Louis suburb of Ferguson is presenting U.S. President Barack Obama with an issue to which he has a deep personal connection. To many Americans, Obama's election as America's first black president marked a turning point in race relations in the United States, and Obama has made ending the violence a policy priority. On Monday he issued a new call for calm and understanding. Luis Ramirez reports from the White House.
Video

Video Clinton-Obama Relationship Could Impact 2016 Election

President Barack Obama and former Secretary of State Hillary Clinton have a long and complicated relationship. That relationship took another turn recently when Clinton criticized the president’s foreign policy. VOA National Correspondent Jim Malone reports there is renewed attention on the Clinton-Obama relationship as Hillary Clinton considers running for
Video

Video Iran Looks to Maintain Influence in Baghdad With New Shia PM

Washington and Tehran share the goal of stopping Syrian-based militants in Iraq. But experts say it's Iran, not the United States, that will most influence how the new government in Baghdad approaches internal reforms and the war in Syria. VOA State Department Correspondent Scott Stearns has the story.

AppleAndroid