In his recent trip to nearby Buffalo, Syracuse, and Binghamton, President Obama revealed his new plan to make college more affordable.
This handy infographic from the White House explains the major reforms and initiatives the President hopes to advance in order to hold colleges accountable for providing a quality education, encourage schools to use technology to cut costs, and make it easier for borrowers to repay their student loans.
The good news? The government has finally come to an agreement on student loan interest rates and agreed to lower rates through the 2015 academic year.
The bad news?After 2015, rates would likely climb higher than they were this past spring.
Today, the Senate failed once again to implement a one-year, retroactive fix that would keep rates at 3.4 percent on federal subsidized Stafford loans made from July 1, 2013, to June 30, 2014. Lawmakers have been debating various proposals to lower student rates but have neglected to come to an agreement.
July 1 has come and gone. If you’ve been following along with the news, you know that that means the interest rates on new federal subsidized Stafford loans jumped from 3.4% to 6.8%.
Watch this video to find out what it means for the 7 million students who will take out a federal student loan this year and how it could negatively impact the economy.
Funding for federal student aid programs was first authorized in the 1960s and 1970s and has increased dramatically to keep up with the skyrocketing costs of college. Yet, despite this increased aid, negative patterns of inequalities in college attendance, low completion rates, and high student debt continue. It’s become clear that a new approach might be needed: one that focuses on college affordability and access.
How closely have you examined your college bill? There’s more than just tuition, room, and board charges–many schools pack on several hidden fees, sometimes to the tune of thousands of dollars per year.