Loan Interest Rate Increased
Does it sometimes feel like our legislation is ran and managed by tall children? These compromises they constantly discuss and need to be made many times, result in outcomes that benefit the few. It is currently being decided to reduce the United States budget deficit through the use of future payoffs of student loans. Currently, our federal student loan debt has surpassed the $1 trillion mark. I can only assume that is due to the fact that a large numbers of individuals who attend college can’t afford the cost of college then or now. “The Plan” is to pay one debt off the shoulders of another. This increase will raise interest payments by more than $2,600 for the average borrower over the next decade.
However, the real issue concerning loans, debt, and college tuition is the constantly rising cost of tuition requiring more loans and acquired debt. The rise in college tuition has increased dramatically over the past 30 years. In 1980, tuition, room, and board for a full-time undergraduate averaged $5,939. In 2010, those costs averaged $13,297, an increase of 124% in 30 years, per The National Center for Education Statistics.
A decade ago tuition, paid by students covered 1/3 of the cost of educating a student. Government funds covered 2/3 of the cost. The table has since flipped; students are now responsible for 2/3 of the cost ensuring universities are still fully funded. College is an investment you must ask questions and ensure you are getting your moneys worth.
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