A war of words over student loan interest rates shows how hard it is to fix government problems even when most politicians agree that keeping student loans affordable is in the country’s best interest.
Interest rates on federal student loans could jump from 3.4 percent to 6.8 percent if Congress doesn't act before July.
Interest rates on federal student loans could jump from 3.4 percent to 6.8 percent if Congress doesn't act before July.
This week, President Obama visited three universities and talked to young voters about a potential increase to student loan interest rates that will happen unless Congress acts. In a shrewd move of political messaging, he also appeared on a late night talk show and performed in a slow jam video on the topic that went viral.
During the president’s first stop at the University of North Carolina, he encouraged the young crowd use the Twitter hashtag #DontDoubleMyRate to voice their concerns about the loan rate increase. He also urged students to contact their members of Congress, adding that, “Michelle and I, we know about this firsthand…. We only finished paying off our student loans about eight years ago. Think about that, I'm the President of the United States.”
Republican Mitt Romney, who is poised to run against Mr. Obama in the upcoming presidential election, has also urged Congress to extend the lower rates.
It’s still unclear what Congress will do. A one year extension would cost about $6 billion and Republican lawmakers are working “in hopes of finding a responsible solution that serves borrowers and taxpayers equally well,” according to Rep. John Kline, a Republican from Minnesota who is chairman of the House Education and the Workforce Committee.
