Student Loan Debt Nearly Doubles in Last Five Years, Report Says

June 18, 2013
Los Angeles Times 
student loan news

U.S. student loan debt has almost doubled over the past five years, the congressional Joint Economic Committee revealed on June 18. Its report puts the volume just below $1 trillion in the first quarter of this year, up from $550 billion at the end of 2007. Two-thirds of recent graduates are carrying an average of more than $27,000 in student loans, and the burden on new borrowers will swell even higher unless Congress blocks a rise in interest on federal Stafford loans to 6.8 percent from 3.4 percent starting July 1. Bankrolling their college education would cost $4,500 more for students who borrow the maximum on those loans if no action is taken before then. "Allowing the interest rate on subsidized Stafford loans to double at a time when the government's cost of borrowing is so low undermines the public policy objective of providing affordable loans to students," according to the report.
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