Hey, college students!
If you weren’t already bummed that 53 percent of you will likely face joblessness or underemployment upon graduation, or that university is a big waste of time and money, we have even more bad news for you.
Unless Congress gets its shit together — which it probably won’t because it’s Congress — interest rates for federally backed Stafford loans will totally swell from 3.4 percent to 6.8 percent July 1, according to the Associated Press.
For some 7 million U.S. undergrads, that means that tuition would go up $1,000.
Both Barack Obama and Mitt Romney have made stump speeches on the issue to students and reporters, promising that things must change.
(Because more promises that go nowhere are just what we need when student loan debt has exceeded $1 trillion, more than credit card and car debt.)
Anyway, the AP gives a good idea of how much a problem this is: because student loan debt is still growing, it can put economic recovery at risk.
No surprise here, but the legislators who could fix the situation are wavering, telling reporters that they must contend with an “untenable situation” — between increasing interest rates or further burdening taxpayers.
What’s truly untenable, though, is that instead of finding a real solution for students, the most viable idea on the table is a short-term fix — to temporarily extend the 3.4 percent rate.