The On Student Loan Interest Rates Essay

827 Words Nov 20th, 2015 4 Pages
Secondly, students are or have been struggling for some time to manage the cost of college. Over the next decade, it has been estimated that the federal government will make a profit of over $110 billion on student loan programs. This is morally wrong and it is bad economics. As President, Bernie Sanders will prevent the federal government from profiteering on the backs of college students and use this money instead to significantly lower student loan interest rates. The formula for setting student loan interest rates would go back to where it was in 2006. If this plan were in effect today, interest rates on undergraduate loans would drop from 4.29% to just 2.37%. It makes no sense that you can get an auto loan today with an interest rate of 2.5%, but millions of college graduates are forced to pay interest rates of 5-7% or more for decades. Americans should be able to refinance their student loans at today’s low interest rates. The Sanders plan would require public colleges and universities to meet 100% of the financial needs of the lowest-income students. Low-income students would be able to use federal, state and college financial aid to cover room and board, books and living expenses. And Sanders would more than triple the federal work study program to build valuable career experience that will help them after they graduate. It isn’t fair that Americans are trying their hardest to brighten their future with a well rounded education, then to have to turn around and owe…

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