Relief for Students with Loan Debt

Lawmakers passed a one-year extension on current student loan interest rates.

The 3.4% interest rate for some federal student loans will remain in effect two days before the rate would have doubled to 6.8.  Associate Director of Student Services at Ohio University-Zanesville Jason Howard said students can avoid overwhelming loan debt by attending a community college for the first two years of their bachelor’s degree program.

"We work so hard to keep our tuition low so students are not in a position to have to borrow nearly the amount of money we see nationally," said Howard.  "Student loan debt in general is becoming such a problem, and one of the great things about local schools is that we keep tuition low."

Howard said that because community colleges are typically smaller than traditional colleges and universities, the staff is usually able to offer more personalized loan counseling services.

"They have certain steps that they need to follow and check off that they’ve read it and understand it," said Howard.  "They have promissory notes and entrance loan counseling, where they can learn a little bit more about what it means to borrow money."

According to the Consumer Financial Protection Bureau, outstanding educational debt reached $1 trillion earlier this year.