With federal college interest loans set to double in less than a month, concerned Congressmen are working closely with White House officials to extend the deadline by another year. The federal Stafford loan, a government student loan program meant to alleviate the financial burdens for college students, is currently set at 3.4% but is scheduled to double to 6.8% beginning July 1st. Efforts to extend the deadline so far has come short as the Obama administration tries to find alternative ways to cover the cost of extending the deadline. Vice President Joe Biden recently stated during a meeting with college officials that his administration is “not going to trade off student loans for other vital, vital programs.”
In doing so, Biden is ruling out crosscutting proposals such as the possible reduction of federal Medicaid reimbursements to states. If interest rates are indeed doubled, the move will affect thousands of students entering college, including myself. In an era where student loan debts are reaching astronomical figures, such a spike in rates will make it increasingly difficult to pay off college debts.. The next couple of weeks will see new developments in regards to the fight to extent the deadline as the fate of thousands of college bound students are on the line.