Lower Interest on Federal Student Loans

As the Democrats take control of Congress new graduate students may have an easier time repaying their loan debts. The new Democratic leaders have promised to cut the interest rates in half to make new college loan payments lower. Included in their goals is the boosting of government money for education while rewriting the No Child Left Behind act.

During the first 100 hours of operation for the Democrats next year they will first handle the issues of cutting federal student loan interest rates by almost half. Included in the plan was the idea that student loans would be forgiven after twenty-five years, the maximum award for the Pell Grant would be increased to over five thousand dollars and student loan payments would be capped at fifteen percent of the student's discretionary income.

This move on the part of Democratic leaders was started as a result of the rapid rise in student debt. The interest rate is planned to be dropped from 6.8 percent to 3.4 percent. Throughout the United States students are facing high amounts of debt. However, should these changes be past it will cost an estimated eighteen billion over the course of the next five years which may test the willingness of the government to go with the plan.