Saturday, March 24, 2012
As the cost of a college education continues to soar above the ability of many families to afford it, the number of defaults on student loans is running high with the problem proving particularly acute in Indiana. And the issue could grow even more troublesome over the next few months if Congress fails to stop a plan that would double the fixed interest rate on a popular student loan program. "A college education is key to success in today's economy, but for many students the spiraling costs of higher education are creating an immense barrier," said Rep. Joe Courtney, D-Conn., sponsor of legislation to keep student loan interest rates affordable. "At a time when Americans owe more in student-loan debt than credit card debt, it is critical that we prevent interest rates from rising further," Courtney said. "We cannot allow a de-facto tax increase on middle- and low-income families to exacerbate this problem, especially as we work to continue our economic recovery."