A new law is being prepared in the United States whose objective is to make life easier for those who take out a student loan to finance their studies. This bill is part of the very significant student debt relief across the Atlantic.
After his election, Joe Biden tackled a problem that cripples the American education system: student debt. Indeed, with courses that can go up to 75,000 dollars a year, those who wish to continue their studies after high school do not have many options. They can benefit from a merit scholarship or a sports scholarship, be lucky enough to have wealthy parents or take out a student loan.
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Student loan: a law attacks interest rates
The famous ” credit score which helps to find out more about a citizen’s creditworthiness is at the heart of the American economy and students are not exempt from this financial pressure. Indeed, student debt stood at $1.78 trillion in the United States, in the first quarter of 2023. Yet Joe Biden has tried to stem the problem with partial cancellation for nearly 20 million Americans.
Now Democratic Senator Peter Welch and Democratic House Member Joe Courtney want to go further with the bill. Student Loan Elimination Act. This retroactive project would make it possible to bring down interest rates to 0% for 43 million students or graduates who have taken out a federal loan to finance their studies. This bill also regulates loans for future borrowers who could not have a rate higher than 4%.
For Joe Courtney, the ” students and families are already under the cost of rising tuition fees at universities. The feds must not exacerbate the problem by making money off the backs of federal loan borrowers “. He also explains that students who take out a federal loan pay an average of $7,800 in interest over 10 years.
Read also: University Fraud: The US Cancels the Debt of 200,000 Students
2023-08-24 06:48:12
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