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Tue May 1, 2012
Michigan lawmakers push to hold down student loan interest rate
Michigan U.S. Rep. Gary Peters (D-Troy) says tens of thousands of people in Michigan face the prospect of higher student loan costs, unless Congress acts soon.
The interest rate on government-backed Stafford student loans is set to double July 1, to 6.8 percent.
"Just here in the state of Michigan 330,000 students will be faced with a large increase in that interest, which will add $1,000 to the debt of the average student. So on average $4,000 if you get out in four years," Peters said
MaVida Burrus is a student at Walsh College in Oakland County. She says the interest rate hike would make it difficult to balance her household checkbook.
"I am the mother of three, and we have bills to pay, we have mortgages, we have car notes, and I am raising these children on my own," Burrus said at a press conference called by Peters. "So this interest rate would mean a lot to me."
The U.S. House passed a Republican-sponsored bill last week that would maintain the lower rate, and pay for it with cuts to public health programs.
Reps. Peters and Hansen Clarke are co-sponsors of a bill that would instead end $6 billion worth of subsidies to the oil and gas industries. That's the cost to the federal government of keeping the lower interest rate.