Senator Shaheen at PSU On Keeping Student Interest Rates Low

On Thurs., May 3, United States Senator Jeanne Shaheen (D- N.H.) joined a panel of Plymouth State University administrative personnel and students to speak to the PSU community about the current vulnerable state of subsidized Stafford Loans for college students.

The panel was comprised of Shaheen, as well as Student Body Vice President Alex Herbst, Financial Aid Fellow Cortland Johansen, former Vice President for Student Affairs and Enrollment Management Dick Hage, and June Schlabach, Director of Financial Aid.

Shaheen, along with many other members of Congress across parties, has been recently advocating holding the interest rate of the Stafford Loan at 3.4 percent. This provision is set to expire on Jul. 1, 2012, resulting in an increase in the interest rate to 6.8 percent, "a tremendous cost to students," said Shaheen.

"Here in New Hampshire, [graduating students] have the highest average debt burden of anywhere in the country," said Shaheen, the average student debt currently at $31,408 per student.

N.H. also ranks 50 out of 50 in the nation in terms of state aid and monetary support for education. With the potential doubling of the Stafford Load interest rate, the 38,000 N.H. students that receive the loan might face more than $1,000 in additional debt upon graduation.

"If we're going to stay competitive, if we're going to stay ahead of the innovation curve, we've got to do this. It's in your interest, your family's interest, the state's interest, and in the country's interest," said Shaheen, to keep the Stafford Loan rate at 3.4 percent and keep a college education as accessible as possible.

Director of Financial Aid June Schlabach said "an investment that our government can make in assisting students now will be returned in the future."

The panel discussed the looming interest rate increase, but also included personal anecdotes and potential consequences of what the doubling of the Stafford interest rate might mean beyond arbitrary figures. 

Former VPSAEM Dick Hage talked about his experience upon graduating from college, and how this generation might not find the same security after college. "I have the ability to live for 30 years on no income, because I was able to invest when I was 24. Will you have that opportunity?" said Hage.

Shaheen asked members from the audience to ask questions or share personal experiences related to the financial aid and student loan process. Many of the anecdotes shared had in common an element of burden. 

"We should never be expecting families to liquidate the American dream... but that's exactly what the process currently expects," said Hage.
"We've got to resolve these issues, we've got to make this a priority, and we've got to make sure that Congress will act before the end of June in a bipartisan way," said Shaheen. "We have to be willing to make some compromises to get this done."