By Adrienne Sheares
There are very few topics that bond people together like student loans. The Internet practically lights on fire whenever a new meme or parody video about student debt is created. You’d be hard-pressed to find someone without an opinion on the matter.
Student loan debt is now at a staggering $ 1 trillion. The average graduating college senior who borrowed owes over $26,000 in loans. Student debt paired with high youth unemployment is a recipe for disaster for millions who need to pay back what they borrowed, now.
Our friends at Campus Progress recently launched a campaign to help address a part of the crisis: high interest rates that go along with these loans. They propose a refinancing program for individuals and their families who have already taken out student loans. Keep in mind, the recession has allowed millions of consumers with good credit to refinance their homes and cars.
Check out the video below to watch their plan.
By allowing people to refinance their loans (similarly to how people refinance a mortgage) this plan could help:
Stimulate The Economy
- Since you’d be paying less interest, you would have more money to spend, putting more money back in the economy.
Increase The Likelihood of Repayment
- 13% of those who were supposed to start repayment in 2009 defaulted on their loan.
- With lower payments, more people would be able to repay what they owe.
So check out their report and tell us if you had the option, would you refinance your student loans?