2Center or American Progress | The Cost o College Will Soar i Interest Rates Allowed to Double
The real impact on families
Doubling ineres raes will cos he average suden andheir amilies approximaely $1,000 more or each year inschool.
Tis increase comes a a ime when uiion has beenrising a 8 percen per year on average.
Sudens are acually paying more han he cos o uiion when loan inerespaymens are acored ino he equaion. Tose
borrowersrelying on Saord Loans will see a 20 percen increase inhe eecive cos o college nex year.
Millions o sudens and heir amilies will be impaced by his change. Tere are 20.5 million college sudens in heUnied Saes and o hose, an esimaed 7.4 million su-dens ake ou Subsidized Saord Loans.
In oher words,one in hree sudens will see heir ineres raes double.Tis increase in he cos o college will hi sudens andheir amilies a a ime when young aduls have sruggledo nd work and wages have sagnaed. Median weekly earnings or 25- o 34-year-olds have allen 5 percen since2001. Te resul is ha young aduls are less able o pay heir suden loan deb even as he amoun hey owe balloons wih rising uiion. Tis willmake i harder or young aduls o aord college a a ime when having ha college degreeis more essenial or employmen han ever.
Young Americans support increasing financial aid and makingcollege loans more affordable
Given he increasing imporance o a college degree and he seep rise in he coso college, i is unsurprising ha he Millennial generaion wans Congress omake our economy sronger by making college more aordable. In ac, in a pollconduced las year, 92 percen o young Democras and 78 percen o youngRepublicans say ha increasing nancial aid and making loans more aordableor college would help make he economy sronger.
Overall, 88 percen o young Americans saed ha increasing nancial aid and making loans more aordableor college would help make he economy sronger.
Percent growth in tuition versus percent growthin wages of 25- to 34-year-olds
Source: Current Population Survey, United States Bureau of Labor Statistics (2001-11), Trends inCollege Pricing, supra note 1.
0%20%40%60%80%100%120%140%160%180%200%20012002 2003 2004 2005 2006 2007 2008 2009 2010 2011WagesTuition at public four-year school
Source: State of Young America: The Poll, supra note 4.
Support for increasing ﬁnancialaid and making college loansmore aﬀordable
Percent who support
All (18-34)88%18-2490% 25-3487%Men84% Women92%White86% African American96% Democrat92%Republican78%Independent93%Latino92%