Fri July 19, 2013
Student Debt Awareness Group Dislikes Senate Deal On Interest Rates
A group that raises awareness of issues surrounding student debt doesn't like a recent deal made in the U.S. Senate on student loan interest rates.
The Institute for College Access and Success (ICAS) tracks student debt at four-year public and private universities across the country. In 2011 the average debt of college graduates in Wisconsin was over $26,000. ICAS president Lauren Asher says Wisconsin ranks 16th in that regard.
“About two-thirds of all four-year college graduates in Wisconsin have student loan debt and their average debt is very close to the national average,” says Asher.
Asher says the Senate compromise with the Obama Administration won't make college more affordable in the long run. The deal will keep undergraduate interests rates at 3.85 percent for another year.
After that, however, rates would rise with the market. Asher says if the country wants to prevent rising student debt, there needs to be more grants so students borrow less. She also says loans need to be affordable and those who have difficulty paying need good repayment options.
“Students and families need really good information — better than they are getting now — about what college is really going to cost and what their financing options are,” says Asher.
According to the College Board, in the last five years tuition at public four-year colleges went up 27 percent beyond the overall inflation rate.
Economy and Business