President Obama wrapped up a three-city tour in Iowa today by speaking to students at the University of Iowa about the best tool they’ve got for achieving the American promise: a college education.
This country has always made a commitment to put a good education within the reach of everybody who's willing to work for it. That’s part of what made us special. That’s what kept us at the forefront of business and science and technology and medicine. That’s a commitment that we need to reaffirm today.
Now, here's the challenge we've got. Since most of you were born, tuition and fees at America’s colleges have more than doubled. And that forces students like you to take out more loans and rack up more debt. The average student who borrows to pay for college now graduates with about $25,000 in student loan debt. And in this state, it’s even higher. Americans now owe more on their student loans than they owe on credit cards.
And living with that debt means you’ve got to make some pretty tough choices. It might mean putting off buying a first home or chasing that great startup idea that you’ve got. Maybe you’ll have to wait a little bit longer to start a family or save for retirement. And when a big chunk of every paycheck goes towards loan debt, that’s not just tough on you, that’s not just tough on middle-class families -- that’s not good for our economy, because that money that could be going into businesses is going just to service debt.
To make matters worse, interest rates on federal Stafford loans are set to double in July, saddling more than 7 million students with an additional $1,000 in debt. Congress has the power to stop this from happening, however, and as he did in North Carolina and Colorado earlier this week, the President asked students to tell their members of Congress one thing: Don’t Double My Rate.
Raise your voice and reach out to your networks if you agree that student loan rates should not double on July 1.