In July, President Barack Obama signed legislation that prevented interest rates on student loans from doubling. If Obama hadn’t acted, the 3.4 percent rate on subsidized Stafford loans for undergraduates would have doubled to 6.8 percent.
According to the White House, the student loan provisions will prevent 7.4 million students from seeing their interest rates double in the coming year, adding about $1,000 to the average cost of a loan.
Education Secretary Arne Duncan pushed hard for the legislation. He said, “Both the President and I believe education is a public good. College should not be reserved only for those who can afford it. All of us share responsibility for making college affordable and keeping the middle-class dream alive. Investing in education is the best investment America can make to bolster our competitiveness in a knowledge-based, global economy. If we don’t invest today, we will lose tomorrow.”
Photo: Jewell Samad/Getty Images