Target: U.S. Representative John Kline, Chair of the House Committee on Education and the Workforce
Goal: Limit interest rates for private student loans
The reality that many college students face in America is far different from the story they’ve been fed throughout their lives. Students are told that if they work hard and invest in their education, whatever the cost, they will have high-paying, secure jobs waiting for them after graduation. What many students find after graduation is that the only jobs available to them don’t even begin to pay off the loans they took out. This is an unsustainable way to manage an economy, and we need to ask Congress to maintain an affordable student loan borrowing rate.
In many other countries, secondary education is either free or cheap enough for anyone to afford. In the U.S., secondary education is prohibitively expensive for the majority of the population. Despite it’s high cost, young people are encouraged to take out loans to pay for college, with the promise of better jobs after graduation. Since 2008, the job market for recent graduates has become abysmal, both in availability and in wages, making it extremely difficult to pay off student loans, especially those from private companies.
President Obama recently signed into a law a reform that will limit federal student loan interest rates, beginning in 2014. While this law will provide much needed protection for those taking out federal student loans, it does not protect those taking out private loans. There are many reasons why a student might need private loans, either in place of federal loans or to supplement them. By signing this petition, you are asking that Congress set limits on private student loan interest rates.
Dear Representative Kline,
The new limit on federal student loan interest rates, which goes into effect in 2014, will be a major boon to our educational system. Students are too often hassled into predatory loans that are impossible to pay off after graduation, and they need a federal option that will protect them from lifelong debt. Unfortunately, federal loans are not always enough to cover the extreme cost of secondary education in the U.S., and private companies are still able to take advantage of those students who need more.
We ask that you set limits on private student loan interest rates. Using the federal rate as a standard, it should be possible to set reasonable limits for private lenders, so that students are not punished for furthering their education. Please put a stop to predatory student loans by setting limits on private interest rates for students.
[Your Name Here]
Photo Credit: DonkeyHotey