MILWAUKEE (WITI) — When lawmakers didn’t act initially of July, rates of interest on student loans doubled, affecting nearly 70% of Wisconsin’s school students. Now students throughout Wisconsin, and the nation, are discovering themselves more and more nervous in regards to the excessive value of tuition and the loans wanted to cowl it.
“I’m going to school full time and working. It’s coming out of my pocket,” mentioned Kenya Stevens, a junior at UWM.
The excellent news on Wednesday, July twenty fourth, is the U.S. Senate handed laws making it inexpensive to take out loans — nevertheless, rates of interest may rise as soon as once more.
Wisconsin Republican Ron Johnson was one in every of 81 senators who voted for the measure, which might minimize the present rate of interest of 6.8% by three factors.
“This proposal sets the current Stafford undergraduate loan at 3.8%. It had been set at an artificially low rate of 3.4% and those rates will vary as the 10-year treasury bill varies over the next ten years,” mentioned Johnson.
Democrat Tammy Baldwin says she voted towards the plan because of the potential for shifting charges. She and different democrats agree the plan may very well be a “bait-and-switch” that will lure in new debtors solely to boost rates of interest just a few years later.
“A college education should be a path to prosperity, a path to the middle class, not a path to indebtedness,” mentioned Baldwin. “A current freshman in high school will end up with a much higher rate than the cap contained in the current U.S. law.”
67% of graduates in Wisconsin have student loan debt. Over the final 4 a long time, the typical quantity owed has soared from roughly $6,000 in 1985 to a projected $30,000 in 2015.
Scot Ross of One Wisconsin Now is an advocate for wholesale reform of student loan debt. Ross believes the present senate deal is only a quick time period resolution.
“The problem with the compromise is that it does nothing with the existing $1.2 million of student loan debt,” mentioned Ross. “Students and middle class families are being squeezed evermore, simply to get a higher education and job training skills.”
Senator Johnson rebuts saying, “it does solve the problem long-term and it also takes care of 100% of student loans, so I respectfully disagree.”
The plan, which is analogous to the one handed within the House of Representatives, would cap rates of interest at 8.25%. The White House estimates a financial savings of roughly $1,500 per undergraduate.
FOX6 – Milwaukee
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