Affordable Higher Education

Student Debt Is Skyrocketing

Higher education in America continues to be critical for both individual success and the social and economic health of our country. While college attendance has grown over the past two decades, state appropriations and federal aid have failed to keep pace with the rising cost of college, shifting more costs to students. As a result, more students than ever must rely on student loans to pay for a college degree, with the average borrower now graduating with over $26,000 in loan debt.

Heavy student loan debt carries negative consequences for borrowers, who must make monthly payments with their hard-earned dollars rather than save up and get ahead. High debt can affect where graduates live, the kind of careers they pursue, when they start a family or purchase a home, and whether they can save for retirement. The combination of high student debt and low earnings can lead to default, ruined credit and wage garnishment. Such distress runs counter to the goal of higher education.

The U.S. PIRG Higher Education Project is working to:

1. Keep loans affordable: This July, interest rates will double on the subsidized Stafford loans that almost 8 million students use to pay for school. U.S. PIRG is campaigning to prevent interest rates from doubling and advocating for more and better repayment options once a student graduates.

2. Increase grant aid to students, such as the Pell Grant: The Pell Grant is the federal government's cornerstone financial aid program, providing scholarship aid to almost 10 million students of modest income each year. U.S. PIRG is making sure that every student can rely on their grant to stay in school and make it to graduation.

3. Make textbooks affordable: Textbook prices are rising four times faster than inflation, leaving the average student now paying over $1,100 every year for textbooks. After working to end many tricks the publishing industry used to increase prices unfairly, U.S. PIRG is fostering real competition in the textbook market place by promoting more affordable options like open textbooks and open education resources.

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News Release | U.S. PIRG | Higher Ed

Interest Rates for 33,833 Student Loan Borrowers in Maine Set to Double on July 1

According to an issue brief released today by U.S. PIRG, the upcoming increase in student loan interest rates would hike the cost of Maine students’ loans by $31 million. That translates into a $910 increase in debt per student, per loan.

Report | U.S. PIRG | Higher Ed

Student Loan Debt in Maine

Without a new plan from Congress, on July 1 the interest rate on subsidized Stafford student loans will double, from 3.4 percent to 6.8 percent. In Maine, 33,883 federal student loan borrowers will be impacted if the rate doubles.

News Release | U.S. PIRG | Higher Ed

Students’ Statement in Support of the Student Loan Affordability Act of 2013

Today, Senators Harry Reid, Tom Harkin, Patty Murray, and Jack Reed introduced the Student Loan Affordability Act of 2013. This bill creates a workable solution to keep student loan interest rates low until 2015 while Congress seeks to reauthorize the Higher Education Act and reach a comprehensive solution to the student loan crisis that is good for students.

News Release | U.S. PIRG | Higher Ed

Where Students Stand To Lose the Most if Federal Loan Rates Double

U.S. PIRG released data today detailing the colleges and universities across the country where students would be the most adversely impacted by the looming rate hike on Subsidized Stafford student loans.

News Release | U.S. PIRG | Higher Ed

Statement from Student and Youth Groups on Rep. Kline’s Student Loan Proposal

Yesterday, Rep. Kline introduced a student loan reform package, H.R. 1911, which pegs student loan interest rates to the market, moving away from the fixed rates that are set by Congress. Under this plan, student debt levels will increase. While we are pleased that the proposal includes a cap on interest rates, a critical feature to indicate to borrowers that their loans will not rise past certain limits, the interest rates on some loans could still rise to double digits - far too high.

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News Release | U.S. PIRG | Higher Ed

Interest Rates for 33,833 Student Loan Borrowers in Maine Set to Double on July 1

According to an issue brief released today by U.S. PIRG, the upcoming increase in student loan interest rates would hike the cost of Maine students’ loans by $31 million. That translates into a $910 increase in debt per student, per loan.

News Release | U.S. PIRG | Higher Ed

Students’ Statement in Support of the Student Loan Affordability Act of 2013

Today, Senators Harry Reid, Tom Harkin, Patty Murray, and Jack Reed introduced the Student Loan Affordability Act of 2013. This bill creates a workable solution to keep student loan interest rates low until 2015 while Congress seeks to reauthorize the Higher Education Act and reach a comprehensive solution to the student loan crisis that is good for students.

News Release | U.S. PIRG | Higher Ed

Where Students Stand To Lose the Most if Federal Loan Rates Double

U.S. PIRG released data today detailing the colleges and universities across the country where students would be the most adversely impacted by the looming rate hike on Subsidized Stafford student loans.

News Release | U.S. PIRG | Higher Ed

Statement from Student and Youth Groups on Rep. Kline’s Student Loan Proposal

Yesterday, Rep. Kline introduced a student loan reform package, H.R. 1911, which pegs student loan interest rates to the market, moving away from the fixed rates that are set by Congress. Under this plan, student debt levels will increase. While we are pleased that the proposal includes a cap on interest rates, a critical feature to indicate to borrowers that their loans will not rise past certain limits, the interest rates on some loans could still rise to double digits - far too high.

News Release | U.S. PIRG | Higher Ed

Representatives Bass and Courtney Speak on Legislative Solutions to Student Debt Crisis

U.S. Representatives Joe Courtney (CT) and Karen Bass (CA) were joined today by student advocacy groups to highlight legislative solutions to rein in student loan debt. One year ago today, the United States' total amount of student debt crossed the $1 trillion mark.

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Result | Higher Ed

Stopping Student Loan Interest Rates from Doubling

With college student debt reaching record levels, it is essential that we stop adding to students' loan burden. In spring 2012, U.S. PIRG speaheaded a coalition to stop the interest rate on federal Stafford student loans from doubling from 3.4 percent to 6.8 percent. This increase would have cost eight million students an additional $1,000 per loan. At the coalition's urging, Congress came together to find a bipartisan solution, extending the low interest rate for an additional year.

Result | Higher Ed

Keeping Higher Education Affordable

With the rising cost of higher education, it's critical to protect the federal financial aid programs that make college affordable for millions of students. U.S. PIRG helped lead the campaign that passed the Student Aid and Fiscal Responsibility Act, which makes huge investments in financial aid by ending sweetheart subsidies for big banks and student loan companies.

Report | U.S. PIRG | Higher Ed

Student Loan Debt in Maine

Without a new plan from Congress, on July 1 the interest rate on subsidized Stafford student loans will double, from 3.4 percent to 6.8 percent. In Maine, 33,883 federal student loan borrowers will be impacted if the rate doubles.

Report | U.S. PIRG | Higher Ed

Issue Brief: Don't Double Our Rates

Congress should be helping to keep college affordable, not making it more expensive for student loan borrowers to pay for college.

Report | U.S. PIRG Education Fund | Consumer Protection, Higher Ed

The Campus Debit Card Trap

Banks and other financial firms are taking advantage of a variety of opportunities to form partnerships with colleges and universities to produce campus student ID cards and to offer student aid disbursements on debit or prepaid cards. In addition to on-campus services, such as student ID functions offered on the card, some cards offer traditional debit card services linked to bank accounts; other cards provide additional reloadable prepaid card functions. The disbursement of financial aid and university refunds is the most significant partnership identified.

Report | U.S. PIRG | Higher Ed

The Cost of College Will Soar if Interest Rates Allowed to Double

The loans distributed by the U.S. Department of Education currently hold an interest rate of 3.4 percent. But that rate is set to double if Congress fails to act by July 1, 2012. If that occurs, millions of students will see their interest rates soar to 6.8 percent on the new loans they take in the next year thereby causing a steep rise in their loan burden and effectively increasing the cost of attaining a college degree.

Report | CALPIRG | Higher Ed

Working Too Hard to Make the Grade

Our commitment to equity and our future economic success require that we make higher education accessible to all Californians, and that our students succeed academically and graduate. The community college system plays a key role in California’s ability to meet these goals, educating six out of every ten college students in the state and opening their doors to students of every type. It is therefore deeply concerning that, of all community college students who intend to complete an associate’s degree, or transfer to a four-year school, only 24 percent achieve their goal within six years.

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Blog Post | Higher Ed

Students to Congress: Don’t Double Our Rates | Chris Lindstrom

Earlier this week, the Education and Workforce Committee in the U.S. House held a hearing to purportedly “strengthen” the federal student loan program. Sadly, the proposals put forth by leaders in the hearing do anything but help solve the problem of high cost federal student loans. What the hearing did do was serve as a grave reminder that on July 1, student loan interest rates on subsidized Stafford student loans will double from 3.4 percent to 6.8 percent—driving up the cost of higher education for 8 million students by $1,000 per loan.

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Blog Post | Higher Ed

Obama's New Consumer Finance Chief Can Lower Student Debt | Rich Williams

President Obama took a bold and important step this week, standing up for student consumers by making a recess appointment of former Ohio Attorney General Richard Cordray to head the new Consumer Financial Protection Bureau (CFPB). The president's action means that the CFPB now has all its powers to protect students from unfair financial practices that pile on student debt, including lenders offering dangerously expensive private student loans and aggressive credit and debit card marketing.

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Blog Post | Higher Ed

Student Loan Defaults Skyrocket, Double in Past 6 Years | Rich Williams

On September 12th, the US Department of Education released the official FY 2009 cohort default rates on student loans. The number of students who defaulted within two years of entering repayment increased to 8.8%, up from 4.5% in FY 2003 and 7% in FY 2008.

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