If the interest rate, on these loans stays at 6.8%, the increase in wage after ten years would net in 4 billion dollars. So basically according to press releases, Congress failed to come up with a new plan and missed their July 1st deadline. Congress came up with a plan previously; however it failed to address an charge of billion dollars and the president vetoed it. Looking at the current student debt figures, the mean student loan debt is at K and with latest calculations there are 7 million new students, and many of them would be affected by this increase in interest. Totaling up the whole that will be charged to the loan based on the new interest rate, an increase of about ,000 dollars would be experienced to each student who is awarded these loans.
There were some factors involved that caused this deadline to be missed, one of which included the President. A few months ago President Obama vetoed the Bill icy the interest rates at 3.8% for the next two years. After vetoing the Bill, Obama stated that the interest rate would have gone to 6.8% after two years anyways, and that the President wants to see a longer term solution be put in place. With the previous Bill passed by a Republican majority, the Democrats hadn't been Looking eye to eye with them, and the Democratic side of the house was Looking for a longer term solution as well. Luckily for all of us American People, the President is a Democrat, sharing the same views as the democrats in congress, who unfortunately didn't have adequate weight to cause any affect on this previously passed bill. So the president simply vetoed this Bill passed by congress and forced them to come up with another plan. Interestingly adequate had this Bill been passed by congress as well as the president, the cost related to icy the interest rate at 3.8% would have been colse to billion dollars.
learner Loan Interest Rate Problems
Throughout the congressional session that was held on July 24th, here are some of the facts that were used in maintain of their new plan. One senator mentioned that some of the schools have tuition costs upwards of K per year to attend, and that many of these schools charging these high tuitions have very high drop-out/ failure rates. He went on to say that these high costing schools increase the Us schooling debt frivolously. Unfortunately the current Us schooling debt is at trillion dollars, climbing by 113 billion dollars this year, and that this outline is roughly about k per someone in the Us. Now in these post-recession times, the unemployment rate for young adults aged 20-24 are at 14%. This high unemployment rate has an affect on citizen wanting to return back to school since they cannot find adequate jobs and the jobs that they can find have reduced wages or in a not profitable career field. Some citizen even continue attending school after they graduate due to the situation with our American economy. Altogether this congressional session was about 3.5 hours long and gave many grueling details about the effects of higher interest rates on the American citizen and what influences this has on the schooling debt.
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