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As part of his reelection campaign the president's been sounding the alarm bells on student loans.
There's one specific thing that congress needs to do right now.
To prevent the interest rates on student loans federal student loans from shooting up and shaking you down.
Yes this July the interest rate for some new federal student loans is set to double from 3.4 percent to six point 8%.
Now presents calling for an election year fix to extend this low rates just another year at the cost of six billion dollars.
Now from the way he described that you think is program is a lot bigger than the bits here is a quick quiz to figure out whether it applies to -- OK are you an undergraduate.
-- do you qualify for need based subsidized Stafford loan -- we be taking out that loan after this July.
-- -- if he answered no to any of these questions the president's program does nothing for you don't.
If you're getting -- non subsidized loan if your grad student you're paying 6% -- pardon me six point 8% already.
And it's only for new loans loans issued after July 1 now.
All your existing loans don't change so this -- does nothing.
Nothing for the trillion dollars in outstanding student loan debt that's already out there.
It just makes it easier to take out a government backed loan.
It makes a college it makes college that is a little easier for students to pay for.
At the taxpayers' expense -- -- schools raise prices it enables people to take on more debt than they can really afford.
What does that remind you out.
Eight out of ten loans eight out of ten are backed by the federal government and nearly three -- student loans have past -- balances at thirty days or more.
After the housing crisis we spent billions bailing out Fannie and Freddie.
When the student loan bubble bursts.
How much who we have to spend to save Sallie Mae it's a very good question.
The president likes to pretend he's got big solutions for the big problems and not just student loans but.
This is an expensive fix for a small part of a problem that's only getting worse.
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