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Debate Club

Should the Lower Interest Rate on Stafford Loans Be Extended?

Should the Lower Interest Rate on Stafford Loans Be Extended?

President Obama toured college campuses this week speaking on the issue of student loan interest rates in what critics say was a partisan appeal to the youth vote. The current interest rate on federal Stafford loans is set to double—from 3.4 percent to 6.8 percent—July 1, as legislation from 2007 to reduce the rate expires. Obama is asking Congress to extend the lower rate another year to help young people pay off student debt, particularly as half of all college graduates leave school unemployed or underemployed. Opponents of the measure, which is expected to cost the government around $6 billion, say the government-subsidized extension will be paid for by tax hikes that would jeopardize the weak economic recovery. Should the lower interest rate on Stafford loans extended? Here is Debate Club’s take:


The Arguments

#1
42 Pts
We Must Protect Families from Exorbitant Loan Rates

Yes – We Must Protect Families from Exorbitant Loan Rates

Gary Peters Member of the U.S. House of Representatives

#2
16 Pts
Private Loans Without Bankruptcy Option Are the Real Problem

No – Private Loans Without Bankruptcy Option Are the Real Problem

Amy Laitinen Senior Policy Analyst at Education Sector

#3
-17 Pts
Stafford Interest Rate Cut Does Not Help Right Away

No – Stafford Interest Rate Cut Does Not Help Right Away

Matthew M. Chingos Fellow at the Brown Center on Education Policy at the Brookings Institution

#4
-19 Pts
Taxpayers on the Hook as Interest Rate Cut Drives Tuition Up

No – Taxpayers on the Hook as Interest Rate Cut Drives Tuition Up

Brian Darling Senior Fellow for Government Studies at the Heritage Foundation

#5
-22 Pts
Let Student Loan Interest Rates Rise

No – Let Student Loan Interest Rates Rise

Neal McCluskey Associate Director of the Cato Institute's Center for Educational Freedom


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