Certain students may pay higher college-loan interest rates if Congress does not work to prevent mandatory cuts.
Future interest rates on subsidized Stafford loans will increase by one hundred percent, from 3.4 percent to 6.8 percent, if Congress does not pass a bill keeping the rates as they are by the deadline on July 1. Chairman Paul Ryan of the Budget Committee proposed that Congress should make the interest rate equal to pre-2008 levels. Senate Democrats, on the other hand, proposed that the current student-loan interest rate be left as is permanently as some experts believe large amounts of college loan debt will be detrimental to the economy in the future.
In fact, University of Florida Economics Center director Julia Heath believes that student loan debt could be a major factor in the future of the U.S. economy.
Although student loan debts are not dischargeable, bankruptcy can help a person facing large amounts of debt to get rid of other forms of debt, helping him or her to more easily pay off this type of debt. Call