The recession has hit South Carolina’s recent college graduates especially hard. Faced with one of the worst job markets in our country’s history, many are having trouble paying their student loans. Too many are defaulting, leaving taxpayers to pick up the bill. We need to make it easier for unemployed college graduates to live up to their obligations by temporarily deferring their student loan payments, interest-free.
At present, all recent graduates can defer their loan payments during periods of unemployment, but middle class students who got loans from private lenders still have to pay the interest. Only low-income students have their interest payments waived.
So, for a period of two years, let’s waive the interest payments on all student loans for 2008, 2009 and 2010 college graduates who can’t find a job but are actively looking for work.
The cost of attending a four-year public university has increased 84% over the last ten years. Students owe, on average, more than $23,000 by the time they graduate. Many are forced to borrow much more.
Today, the student loan default rate is at its highest level in more than 10 years and in 2008, the federal government paid $8.5 billion to lenders to cover the cost of student loan defaults in the Family Federal Education Loan program.
Instead of paying for defaults, we can help students to pay their loans back.
It’s an investment in our country’s future. It promotes responsibility. And it will save taxpayers’ money in the long run.
That’s why this is something we ought to do - now.
Submit your ideas to chad@chadmcgowan.com.
At present, all recent graduates can defer their loan payments during periods of unemployment, but middle class students who got loans from private lenders still have to pay the interest. Only low-income students have their interest payments waived.
So, for a period of two years, let’s waive the interest payments on all student loans for 2008, 2009 and 2010 college graduates who can’t find a job but are actively looking for work.
The cost of attending a four-year public university has increased 84% over the last ten years. Students owe, on average, more than $23,000 by the time they graduate. Many are forced to borrow much more.
Today, the student loan default rate is at its highest level in more than 10 years and in 2008, the federal government paid $8.5 billion to lenders to cover the cost of student loan defaults in the Family Federal Education Loan program.
Instead of paying for defaults, we can help students to pay their loans back.
It’s an investment in our country’s future. It promotes responsibility. And it will save taxpayers’ money in the long run.
That’s why this is something we ought to do - now.
Submit your ideas to chad@chadmcgowan.com.
