SPRINGFIELD, Mass. (WWLP) – For college students and graduates it seems student loan debt just keep piling higher and higher.
Lyndsey St. Geane, a WNEU Sophomore, told 22News, “I know a lot of people who can’t afford to go to a four year school so they go to community college. I think for a lot of people they don’t even apply to the schools that are expensive, which is most of them.”
Sen. Warren has suggested a new law that would allow students to refinance their college debt to lower interest rates, and reducing payments. Currently there are more than 40 million people who owe $1.2 trillion in education debt.
In fact 71% of college seniors graduated with debt in 2012. Here in the United States the amount of student loan debt actually surpasses the amount of credit card debt.
Sen. Warren said once interest rates are cut, students could save hundreds of dollars a month. The Government Accountability Office released a report that showed over a 5 year period, the federal government stood to profit $66 billion from interest.
According to Bobby Caruso, a WNEU Sophomore, “Knowing that we’re working so hard, and your families are trying to pool things together and figure out what they are trying to do financially just so you have happy and successful years to prepare you it’s kind of hard to hear that the government is profiting off that so much.”
Warren is proposing the government reduce interest rates on loans and makes up the loss of money by enacting the Buffett Rule. That would increase the income tax rate of Americans earning more than a million dollars a year.