Tag Archives: college affordability

Rising Student Loan Interest Rates Loom Ahead

2 Jul

ImageThe PBS Newshour Education offered a thought-provoking podcast on the imminent interest rate hikes on federal student loans.  July 1st marked the deadline for federal Stafford loans’ interest rate to double from 3.4% to 6.8%.  Congress did not come up with a long term solution by July 1st and will vote to extend the 3.4% rate for another year.  However, this podcast explored the deeper issue here-the rising costs of higher education.  Two leaders from nonprofit groups that advocate for the Millennial and the author of “Generation Debt” were interviewed on their views of the rate increase and the government’s role in subsidizing higher education.

They all agreed that the real issue at hand is not the higher interest rate, but college affordability.  One believed that the government was perpetuating the increase in college costs because it was reaping huge profits from these student loans.  Another believed that the colleges were not investing in the right areas, i.e. investing in football fields rather than giving out more grants.  The author provided an interesting suggestion that the government should be looking into using technology (online courses) to reduce the costs of college.      

I thought this was an intriguing interview with some great opinions and suggestions.  I would definitely use a podcast as a professional development tool in the future.  The podcast brought to light some issues that I was not familiar with and therefore was an easy way to educate myself.  EdReach offers an easy and convenient way to get your educational news in a one-stop shop!

 

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