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25 April 2012

Obama Campaign: Georgia Students Facing Nearly $1,000 Impact if Interest Rates Rise

In a speech delivered Wednesday afternoon at the University of Colorado, President Obama continued his push to stop interest rates on federal student loans from increasing July 1st.

"Five years ago, Congress cut the rates on federal student loans in half," Obama said during his remarks. "On July 1st of this year, two months from now, that rate cut expires.

"I want everybody to understand this. Interest rates on those loans will double overnight, starting on July 1st, if Congress does not act. And for each year that Congress does not act, the average student with these loans is going to rack up an additional $1,000 in debt. It’s basically a $1,000 tax hike for more than 7 million students across America."

According to the Obama re-election campaign, just over 225,000 Georgia students qualified and received federal loans for the 2012 - 2013 school year. The Obama campaign says if the interest rates rise on those student loans, the estimated impact on Georgia students would be an average of $913.

A bill to extend reduced interest rate for Federal Direct Stafford Loans, House Resolution 3826, was introduced January 25th by Conneticut Congressman Joe Courtney. Georgia Congressmen John Lewis and Hank Johnson are listed as co-sponsors of the bill.

Presumptive GOP presidential nominee Mitt Romney expressed support for extending the reduced interest rates on student loans.