Legislation temporarily prevents student loan rates from doubling

On July 6, President Obama signed legislation that provides students in the United States with a bit of relief. The bill prevents interest rates on student loans from doubling for at least another year.

The White House held a small assembly for the signing of the bill in the late afternoon Friday.

Students, construction workers and the press were gathered for the event.

Construction workers were present because the piece of legislation also provided $100 billion in funding for transportation projects.

Obama stated during the event that, “This bill will keep interest rates on federal student loans from doubling this year, which would have hit nearly 7.5 million students with an average of a thousand dollars more on their loan payments.”

Dan Mann, director of student financial aid at the Univerisity, said this is simply a one-year extension to keep the federal student loan interest rates from doubling and that next year, Congress could be dealing with the same issue again.

“This is a positive thing for students because — those who borrow under the subsidized loans — it’s going to reduce the cost for their student loans,” Mann said. “This is going to help keep student loans at a lower overall cost for students.”

He also said it is good that a temporary solution was found, but he thinks that “we need to still be concerned about what the long-term solution to student loan interest rates are.”

Obama also said he has asked Congress to “reform and expand the financial aid that’s offered to students.”

“In today’s economy, a higher education is the surest path to finding a good job and earning a good salary and making it into the middle class,” Obama said in a press release. “So it can’t be a luxury reserved for just a privileged few. It’s an economic necessity that every American family should be able to afford.”