By: Jennifer Tong
Last week, the House voted in favor of a Senate compromise to keep subsidized Stafford loan interest rates low this year, but could double the interest rate that 11 million college students pay in the future. In recent weeks, Jubilee USA organized 60 religious communities to pray that Congress keep student interest rates low. The legislation links student loan interest rates with the 10-year Treasury note and temporarily lowers the interest rates for students starting this fall to 3.9% and caps future rates at 8.25%.
"It's great that interest rates will remain low for college students this fall. However, we're really disappointed that Congress linked the interest rate to Treasury notes that could double student debts in the future," said Eric LeCompte, Executive Director of Jubilee USA Network.
"Student debt in the US is over $1 trillion dollars. As people of faith, we want to make sure our students are not saddled with unsustainable debts," Pastor Steve Herder of Ascension Lutheran Church in California.
The bill was sent to the White House and President Obama is expected to sign it this week.
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