Congress addresses the burdens of student loans

Students dread them, parents oppose    them, and tax payers and Luigi Zingales fear them; Student Loans. On June 29, Congress signed its approval on a new bill that would extend current interest rates for student loans.

            The legislation packages a federal transportation bill, which extends federal highway, rail and transit programs for 27 months, with bills to student loans. This new $6.7 billion package will allow students to continue their loan repayments at 3.4% interests on Stafford Loans for one year. The Catch 22: A restriction on how long students can obtain Stafford loans.

Zingales published an opinion earlier this month outlining the horrors of student loans. Here, Congress has enacted a new plan that will currently mollify both party leaders, but outrage tax payers.

       “When all is said and done, this bill is what it is,” Representative Nick J. Rahall II, a West Virginia Democrat who was one of the senior negotiators of the bill, said to the New York Times.

For more on student loan changes, check out NYT’s coverage.