The Center for American Progress and Campus Progress released new reports today that detail what an increase in the interest rate on Stafford student loans would mean for several states. If Congress doesn’t act, the interest rate on these loans will double—from 3.4 percent to 6.8 percent—on July 1.
These reports paint a vivid picture of the impact an interest rate hike would have on young people, who are already dealing with a high unemployment rate, large amounts of student debt, and changes to education funding and college costs. Also included are testimonials from students and family members who depend on federal education loans.
Nationwide, 7.4 million student borrowers would be affected by the rate doubling. Find out how your state is impacted:
Brian Stewart is the Communications Manager for Campus Progress. Abraham White is the Communications Associate for Campus Progress.
* Correction, June 25, 2013: These fact sheets incorrectly labeled data as “average debt upon college graduation” and have been updated to “average debt per borrower.” Additionally, the fact sheets now note that the college completion rate is for four-year public colleges.