Republican Congress encouraging higher education for poor and middle class families:
“The Senate passed a deficit-reduction package that calls for $12.7 billion to be cut from federal student-loan programs over five years, the Wall Street Journal reported Thursday.
It is the largest single cut the federal government has made to student aid programs and is expected to increase the debt burden of students and their families as many borrowers of student loans will face higher interest payments, the newspaper said.
According to the Journal, Congress raised interest rates on Stafford loans to a fixed 6.8 percent. Right now, rates on Stafford loans, which are variable and reset each year, are as low as 4.7 percent, the paper said. Stafford loans are popular among students because they don’t have to demonstrate need to qualify for one.
The new legislation also raises interest rates on Parent Loans for Undergraduate Students to a fixed 8.5 percent from a variable rate currently set at 6.1 percent, the Journal said. Also known as PLUS loans, these loans are granted to parents rather than students.”
