If the interest rate, on these loans stays at 6.8%, the growth in wage after ten years would net in 4 billion dollars. So basically according to press releases, Congress failed to come up with a new plan and missed their July 1st deadline. Congress came up with a plan previously; however it failed to address an expense of billion dollars and the president vetoed it. Looking at the current student debt figures, the median student loan debt is at K and with most recent calculations there are 7 million new students, and many of them would be affected by this growth in interest. Totaling up the estimate that will be charged to the loan based on the new interest rate, an growth of about ,000 dollars would be experienced to each student who is awarded these loans.
There were several factors complex that caused this deadline to be missed, one of which included the President. A few months ago President Obama vetoed the Bill freezing the interest rates at 3.8% for the next two years. After vetoing the Bill, Obama stated that the interest rate would have gone to 6.8% after two years anyways, and that the President wants to see a longer term solution be put in place. With the former Bill passed by a Republican majority, the Democrats hadn't been Looking eye to eye with them, and the Democratic side of the house was Looking for a longer term solution as well. Luckily for all of us American People, the President is a Democrat, sharing the same views as the democrats in congress, who unfortunately didn't have adequate weight to cause any work on on this previously passed bill. So the president naturally vetoed this Bill passed by congress and forced them to come up with other plan. Interestingly adequate had this Bill been passed by congress as well as the president, the cost related to freezing the interest rate at 3.8% would have been colse to billion dollars.
trainee Loan Interest Rate Problems
Throughout the congressional session that was held on July 24th, here are some of the facts that were used in hold of their new plan. One senator mentioned that some of the schools have tuition costs upwards of K per year to attend, and that many of these schools charging these high tuitions have highly high drop-out/ failure rates. He went on to say that these high costing schools growth the Us instruction debt frivolously. Unfortunately the current Us instruction debt is at trillion dollars, climbing by 113 billion dollars this year, and that this frame is approximately about k per man in the Us. Now in these post-recession times, the unemployment rate for young adults aged 20-24 are at 14%. This high unemployment rate has an work on on population wanting to return back to school since they cannot find adequate jobs and the jobs that they can find have reduced wages or in a not profitable vocation field. Some population even continue attending school after they graduate due to the situation with our American economy. Altogether this congressional session was about 3.5 hours long and gave many grueling details about the effects of higher interest rates on the American population and what influences this has on the instruction debt.
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