Republicans Offer No Relief As Student Loan Interest Rates Skyrocket

Starting tomorrow, students and parents who take out new loans to pay for college will pay considerably higher interest rates. Also, college graduates who don't consolidate and lock in their rates will be subject to a rate hike. This drastic change will affect millions of Americans. In 2005 alone, seven million students took out federal college loans to pay the increasingly high cost of college tuition, which has increased an average of 40 percent for four-year public colleges under the Bush Administration. [House Education Committee]

This new interest rate hike comes on the heels of Washington Republicans callously passing the largest cut to student aid in history. Washington Republicans have slashed $12 billion from student aid programs, not for deficit reduction as Republicans have claimed, but to finance additional tax cuts for special interests and the wealthy, leaving trillions of dollars of debt for future generations to pay off. Democrats have an alternative plan that eases the burden on America’s working families by cutting up to $ 5,600 in interest costs on loans while fully funding student aid programs like the Pell Grant and Perkins Loans.

College Democrats of America President Grant Woodard issued the following statement:

"The Republican Party has once again demonstrated how out of touch it is with real American values. Providing all young people with the opportunity to attend college is crucial to the future of this great country. Today's students are tomorrow's doctors, lawyers, and politicians and they deserve leaders who make it easier, not harder, to pay for their education. Republicans should join Democrats who have a plan to cut interest rates and fully fund financial aid programs without leaving a legacy of huge deficits to the next generation."