Letter: Rising Cost of College Loans
To the Editor:
According to the March 29 article regarding federally subsidized loans for college students, the interest rates will increase from 3.4 percent to 6.8 percent as of July 1 of this year. We are talking here about a doubling of the interest rates for loans to needy college students while at the same time rates for most other types of borrowing are at an all-time low.
How fair is that? We would be punishing (yet again) those least financially able to repay the indebtedness. Newly graduated college students will most likely be commencing full-time employment at low wages, if they are even able to find work. In addition, borrowing for college students has increased dramatically in recent years to a total indebtedness averaging in the tens of thousands of dollars.
So who can justify this portion of our Congress’ plan, known as sequestration, which is in itself a ridiculous solution passed by our elected representatives. We say, “No way.” A forceful email to your representative is in order and might help turn this tide.
Former financial aid administrators, Dartmouth College