Finally, some good news about student debt
Editorial
Issue date: 1/25/07 Section: Opinion
- Page 1 of 1
Most of us aren't athletic all-stars that are basically paid to go to college. And not all of us have the grades to receive those precious academic scholarships. So, what do students who simply can't afford to go to college do? Take out student loans or don't go at all.
Unfortunately, some do pick the latter, but we hope that will change with H.R. 5, the Student Relief Act of 2007. The act was passed in the House of Representatives in Washington and is waiting for the Senate to pass it as well.
It will slash the interest rates for college loans by half, from a 6.8 percent to 3.4 percent over the next five years. San Mateo County Representative Anna G. Eshoo, who voted for the legislation, could not have stated it more perfectly:
"Cutting interest rates on student loans is an investment in our country's future. By lowering the financial barriers to higher education, this legislation expands opportunities for our young people giving them - and us - a better tomorrow."
Not many of us realize that, because of high interest rates for student loans, 4.4 million high school graduates will not attend a either a four-year public or private university in a decade.
It is disappointing to think that students who work hard all through high school will still be attending two-year colleges or dropping out because they can't afford to pay back student loans.
The typical student in California borrows $15,125 in federal subsidized loans and, when the legislation is fully intact, they will save nearly $4,830. That should be an incentive to go to a four-year college.
It is a shame that so many ignore the hope of attending a four-year institution because of money. Of course, there are always options such as two-year colleges and trade schools. But starting salaries on average for graduates of those institutions are anywhere from $15,000 to $30,000 while the projected salaries of graduates from a four-year university start from $30,000 to $50,000, depending on their major.
We hope the cutting of the student loan interest rates will boost the number of students attending four-year universities. This legislation is not only to help the individual student but it will also assist the America of tomorrow by better educating the future workforce.
And it can't hurt to ease the burden of students who are already staggering under the burden of student debt.
Unfortunately, some do pick the latter, but we hope that will change with H.R. 5, the Student Relief Act of 2007. The act was passed in the House of Representatives in Washington and is waiting for the Senate to pass it as well.
It will slash the interest rates for college loans by half, from a 6.8 percent to 3.4 percent over the next five years. San Mateo County Representative Anna G. Eshoo, who voted for the legislation, could not have stated it more perfectly:
"Cutting interest rates on student loans is an investment in our country's future. By lowering the financial barriers to higher education, this legislation expands opportunities for our young people giving them - and us - a better tomorrow."
Not many of us realize that, because of high interest rates for student loans, 4.4 million high school graduates will not attend a either a four-year public or private university in a decade.
It is disappointing to think that students who work hard all through high school will still be attending two-year colleges or dropping out because they can't afford to pay back student loans.
The typical student in California borrows $15,125 in federal subsidized loans and, when the legislation is fully intact, they will save nearly $4,830. That should be an incentive to go to a four-year college.
It is a shame that so many ignore the hope of attending a four-year institution because of money. Of course, there are always options such as two-year colleges and trade schools. But starting salaries on average for graduates of those institutions are anywhere from $15,000 to $30,000 while the projected salaries of graduates from a four-year university start from $30,000 to $50,000, depending on their major.
We hope the cutting of the student loan interest rates will boost the number of students attending four-year universities. This legislation is not only to help the individual student but it will also assist the America of tomorrow by better educating the future workforce.
And it can't hurt to ease the burden of students who are already staggering under the burden of student debt.
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