5 Reasons Why the Student Loan Crisis Matters

May 13, 2013
By Allie Gregory | 64 comments

Here's what you need to know about Student Loans:

1.  The first 3 months of 2013 were the worst on record for student loans.

2.  In those 3 months, $3.5 billion in gov’t and private loans went bad.

3.  In the last 30 years the cost of college has sextupled.

4.  Over 6.8 million federal student loan borrowers have defaulted.

5.  US Department of Education system for collecting bad loans is struggling to keep up with over $85 billion debt.

We need to solve the impending student loan crisis before it’s too late. Here's our chance, Sen. Elizabeth Warren has introduced a bill that will give students the same ultra low interest rates as big banks.

WATCH HERE:


“As a country, every time we advance money to the big banks at low interest rates, we invest in those banks. We should be making at least that same kind of investment in our students.”

Become a citizen co-sponsor of Sen. Warren's bill here.


Categories:

Comments

Commenting on this post has been closed.

Anyone who votes this down -especially in the name of party loyalty above all else, including common sense and common decency- has no conscience and no business representing the American people.

Katie Austin

i am behind every thing sen. warren tries to do.

dave hillesland

And everytime I try to work a little more to help pay my daughter's fees...I get punished down the road when my tax form shows a tiny little increase in income, it means the future loan amounts offered are smaller. Damned if you do; damned if you don't!

Sara Lahey

I support Senator Warren's bill.

Stephanie Howell

My daughter has just completed her 3rd year at East Carolina University. She plans to obtain a Masters Degree in English Education. She has maintained an A grade average. She has earned 2 scholarships. She works 2-3 part time jobs to support herself. Next school year, she will student-teach 2 days first week, then teach full time second semester. This is unpaid. And she will not be able to work for pay. She will use student loan money for basic living expenses. It would be crippling to her future as a public school teacher to have huge interest debt to pay off. Starting work life deeply indebted is not the way to reward a young person for doing the hard work required to obtain a degree.

Cathy Page

Thank you Senator Warren for looking out for the citizens of this nation. It's about time someone has the average person in mind instead of Wall Street and Corporate profits. Our children feed the bottom line of the country's balance sheet and we need to protect those precious assets as dearly as possible. I LOVE that you are calling out the banks on profiting from the education of our nation and insisting that instead we invest in them. Keep up the great work - you are my hero!

Jill Tellez

Warren rocks! Such common sense. President 2024!

Rebecca Sinkler

As far as the student loan debt crisis, our legislators need to get to the crux of the problem: excessive compounded interest added to principal. Unless you become gainfully employed soon after graduating (emphasis on gainfully) and can pay off your loan fast, interest compounds and the principal grows ad infinitum. Many debtors end up paying double or triple what they actually borrowed to go to college. This is an outrage and seems really out of sync with the original mission of the student loan program. People want to pay back FAIRLY what they borrowed, but the system seems rigged to make it impossible for those who are struggling financially but are making every good-faith effort to pay it off. What is needed is a reasonable cap on the total amount paid back over the original loan amount. I sure hope Senator Warren can do something to right these wrongs -- and not just for current/future students but those weighed down now by the extreme weight of that capitalized interest.

Sharyn Lawler

I agree with Sen. Warren. If we're going to invest in education, this would be a good start. It's clear that the big banks are in control of our congress. Next, some relief for already existing student loans that are killing our kids. Perhaps a cap on how much money can be made on the total loan amount. Sue White

Sue White

would make college more affordable to more people....

Tony Baker

I support Sen Warren's bill!

Michelle Haight

Please keep student loan interest rates low

Dorian Preister

Keep student loan interest rate low

Adolfo Barajas

Keep student interest rates low!!!

madison perry

Keep student interest rates low

Alfonzo Aguilera

Keep student interest rates low

destiny duenas

Keep student interest rates low

brittany kulusich

Please keep student interest rates on loans down. Do not double the interest rates. Please.

Baron Workman

Keep students interest loans low

erick pinto

Keep student loan interest rates low

Alfonzo Harley

I think that we need the rates low for students

David Albitre

Keep student loans interest rates lows

Sara del hierro Del Hierro

Keep interest rates low

Cheyenne Alvarez

Keep student loans low

Juan Alvarado

Keep student loans interest low

Jeanette Smith
Stay informed -- like DFA on Facebook. ×