NC State’s student body president told the N&O, “From our point of view, it just looks like Congress is pushing the budget deficit onto the backs of students…The
cost of college is already beyond the means of too many families.” The
story notes that 70 percent of UNC students borrow to pay for undergrad
and those who finish their degrees owe on average $17,500. The article
finds that students will pay up to $5,800 more in fees and interest if they borrow for 30 years (students usually repay loans in ten years). To get a better sense of what the bills would do, read this.
Congress is eliminating some subsidies and considering adding a 1%
origination fee for loan consolidation, but would cap interest rates on
student loans at 8.25% and rates on parent loans at 9.0%.
“There are significant new benefits [in the bill],” said Alexa Marrero, a Republican spokeswoman on the House Education & Workforce Committee. She added, “ “The Congress
has pledged to restore fiscal discipline and take a look at these
entitlement programs that are growing so rapidly.”
Craig Munier, chairman of the National Direct Student Loan Coalition, argued for minimal costs to students but admitted, “For most undergraduate students, it is not a lot of money.”
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