FOR IMMEDIATE RELEASE:
July 1, 2013

Contact:
Rae Roca
Rae.roca@younginvincibles.org
202.534.3564

[WASHINGTON, DC] — Federal student loan interest rates have doubled from 3.4 to 6.8 percent, as Congress failed to meet the July 1 deadline and now heads home to celebrate the July 4th holiday. A student taking out subsidized Stafford loans from today forward will see a 6.8% rate, unless Congress decides to change the rate back. Below is the statement from Rory O’Sullivan, Policy Director at Young Invincibles.

“Congress has failed students yet again. As our Senators and Representatives head home for vacation, over 7 million students and families will now see their student loan interest rates double from 3.4% to 6.8%. This means that students will end up paying as much as $1,000 extra over the life of the loan per year of school. Things could be even worse. Over the last two weeks, we have seen a few proposals from Members of Congress that would more than double interest rates in the long-run and actually increase the amount of profit that the government makes off of students. When members of Congress comes back from vacation, they must come together and pass legislation to reverse the increase and freeze interest rates at 3.4% for at least 1 year. After that, students, Congress, President Obama, and all involved must come together and work toward a long-term, student-centered fix to the student loan system.”

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Young Invincibles is a national organization committed to amplifying the voices of young Americans, aged 18 to 34, and expanding economic opportunity for our generation. Young Invincibles ensures that young Americans are represented in today’s most pressing societal debates through cutting-edge policy research and analysis and innovative campaigns designed to educate, inform and mobilize our generation to change the status quo.