Why The Student Loan Deal Is Bad News For Students (INFOGRAPHIC)
".... as the Obama administration and congressional leaders celebrate
what they tout as a victory for students, a Huffington Post review of
projections and figures compiled by the White House, Congressional
Budget Office, College Board and other sources suggests that the
legislation may end up doing more harm to household budgets than
Washington officials acknowledge.
Beginning as early as two years from now, students and their families
are projected to pay more for government loans to fund higher education
than they paid in this most recent academic year. The government's
profit from student loans is set to increase. And the growing gap
between rising college costs and stagnant student loan limits may
exacerbate the economic problem posed by student debt.
With overall student debt at $1.2 trillion and counting, U.S.
households are increasingly putting off home and car purchases in favor
of paying down student debt -- a development that has officials at the
Consumer Financial Protection Bureau, Treasury Department and Federal
Reserve worried about the current economic recovery and future growth.
Raising the cost of future loans is likely to make this problem even worse."
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