Obama urges Congress to stop student loan rate hike

Obama urges Congress to stop student loan rate hike

President Obama was joined by college students in the White House Rose Garden as he called on Congress to stop student loans rates from doubling on July 1. Related Stories Readers sound off on Willets Point and the aftermath of Hurricane Sandy Readers sound off on Thanksgiving and the aftermath of Hurricane Sandy Why young voters rejected Romney Student Loan Rates May Be Rising Powered by Inform President Barack Obama on Friday urged Congress to prevent an increase in student loan rates, saying rising college costs hold back the entire middle class and unfairly saddle young people with more debt just as they are starting out in their adult lives. Interest rates on new subsidized Stafford loans are set to double, from 3.4 percent to 6.8 percent, on July 1. Lawmakers from both parties say they want to avoid the increase but are divided over how to act. RELATED: SEN. GILLIBRAND TO INTRODUCE STUDENT DEBT RELIEF BILL Obama made his case flanked by college students dressed in business suits and dresses during remarks in the Rose Garden on a steamy Washington morning. The event marked the beginning of a public campaign by the president to temporarily extend current student loan rates or find a long-term compromise to avoid the July 1 rate increase. "We know that the surest path to the middle class is some form of higher education," Obama said. He said Americans now owe more on student loans than on credit cards. He said he and his wife just finally paid off their loans in the last decade and paid more on them than they did on their mortgage. RELATED: SKIP COLLEGE AND BECOME A PLUMBER: MAYOR BLOOMBERG "We were lucky. We had more resources than many," Obama said. He said the debt is forcing some young people to delay buying cars and houses, which can hurt the economy overall. The White House has proposed linking federal student loan rates to the financial markets. The Republican-controlled House passed a plan last week that would reset student loan rates every year according to financial markets, but Obama has threatened to veto the bill because it doesn't lock in rates. RELATED: STUDY SHOWS MORE FALLING BEHIND IN STUDENT LOAN PAYMENTS "The House bill isn't smart, and it's not fair," Obama argued.


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