Student Loan Deal Pales Against Other Education Cuts
It came down to the wire, but finally, Republicans and Democrats have agreed on a deal that keeps the interest rate on government-backed student loans from doubling. It will save the average borrower about $1,000 a year, but the compromise is likely to cost students a lot more than that over the long term.
The agreement that lawmakers passed Friday will keep interest rates at 3.4 percent for another year. Anthony DeLaRosa, a 23-year-old University of Colorado graduate, says it's a big victory.
"I think the reason that students should support this, first and foremost, is the fact that the 3.4-percent interest rate is being extended," he says, "something that students pushed [for] very, very hard over the last several months."
DeLaRosa works for the U.S. Student Association, a lobbying group. He says 7.4 million students who rely on subsidized Stafford loans can now breathe easier. But some say it's a small
Buried In Debt, Young People Find Dreams Elusive
At 30, Michelle Holshue is already making more than her parents do. But she graduated with $140,000 in student loan debt just as the recession hit. Like many young adults, Holshue is worried she'll never be able to own a home or raise a family.
