White House to Propose Market Interest Rates for Student Loan Debt
Black Enterprise Magazine September/October 2018 Issue

white houseIn an attempt to subside the treacherous effects of student debt, the White House is expected to propose that student loan interest rates be based on the market and not by a fixed rate, presently determined by Congress.

To be sure, the Government is making billions of dollars off of student debt, which sits at a mounting $1.1 trillion. But many student advocates, policy makers, and legislators are rolling out concerns with the overall economic dangers posed by increased student debt. Some have warned that student debt is holding back the economy and risks hurting future credit creation.

“A specific fixed interest rate should not be cited in legislation or in regulation, because such a rate could soon become outdated,” said a statement released by the White House Office of Management and Budget.

In January, the OMB said that because federal student loan interest rates do not move with markets, there may be potential costs to the government and general economy.

Read more at Huffington Post.

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Gerren Keith Gaynor (@MrGerrenalist) is a freelance journalist based in New York City. He has been published in the New York Times, ESSENCE magazine, EBONY.com, New York Amsterdam News, Loop21.com and Newsone.com. Gaynor received his master degree in Journalism from Columbia University and his bachelor's in English from Morehouse College.

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