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This is the VOA special english economics report.
Student loans and the interest millions of Americans pay on them have been getting a lot of attention recently. Student loan payments and the interest are a financial reality for men and women in many different kinds of jobs across the US. The department of education says interest rates for direct subserdanized students loans will double to just under 7% on July.1. Five years ago, congress passed a measure that lowered interest rates for the goverment loans. But the law is sent to expire.
The president has called for the lower 3.4% interest rates in his new budget. But if congress does not act, new students borrowers will pay more. Other borrowing ralated costs will also go up. The Obama administration says this will cost each students borrower additional 1000 dollars on average. Higher education in the US is costly. The department of the education says the average yearly cost have attending a public college was about 15200 dollars in 2010. The total for private schools was over 32000.
The federal reserves bank of Newyork collects finacial information. It's says the Americans owned 845 billion dollars in students loans last year. Some reports say the amount is now nearly one trillion dollars. The administration says 7.4 million students will be affected without a new law. This week, president Obama travelled to several college compuses. At the university of North Calina, he talked about his own experiences. "I guess we didn't come from wealthy families, so when we graduated from college and law school, we had the ...When we marriage, we got poorer toghter."
Supporters of low students loan interest rates have promised a campaion to get new legislation. The extension is estimated to cost the goverment six billion dollars. Mitty Romany, the republican parties likely presential candidate supports the extension. Republican leaders in the house of representitive say they like the popular program. They just differ on how to pay for it.
Republicans want the money to come from the new health care reform law. The demercratic party has proposed increasing taxes on some bussinesses including oil and gas companies. Last Tusday, president Obama put his agument to music on the late television program. "Now is not the time to make school more expensive for young people."
And that's the VOA special english economics report.