County Commissioners oppose increase in student loan rates
(MIAMI) – The Board of Miami-Dade County Commissioners is taking a stand against the recent increase in the subsidized federal student loan interest rate.
At their Tuesday, July 16, 2013 meeting, Commissioners approved a resolution sponsored by Chairwoman Rebeca Sosa urging the federal government to reverse the rate hike, reduce student borrowing rates across the board and enact other reforms to stem the rising cost of a college education and alleviate the burden of student loan debt through refinancing and better consumer protections.
On July 1, 2013, the interest rate on student loans offered to students with financial need doubled from 3.4 percent to 6.8 percent. Unless Congress repeals the rate increase in the coming weeks, it could cost an average student returning to campus this fall an extra $2,600, according to Congress' Joint Economic Committee. More than 7 million undergraduates are expected to take out one of these loans for the coming school year.
“This dramatic increase in the subsidized federal student loan interest rate affects the very people who can least afford it,” Chairwoman Sosa said. “At a time when having a college degree has become more of a necessity to get any job, we should be doing all we can to make a college education more affordable, not less.”
As tuition costs continue to rise at public and private universities around the country, the number of student loan borrowers and their average debt have both gone up more than 70 percent since 2004. Approximately 37 million student loan borrowers now carry outstanding student debt, which totals $1 trillion nationwide, making it the largest category of consumer debt in the U.S. apart from home mortgages.
For more information about Resolution #131465, please call Chairwoman Sosa’s office at 305-375-4696.