College students and recent graduates struggle with student loan debts that are at an all-time high.
Earning a college degree improves one’s earning potential. The rising costs of tuition and student loans leave many graduates with mountains of debt that can be difficult to repay in a struggling economy.
“Student loan debt is the only type of consumer debt that continued to rise throughout the recent recession and subsequent recovery, increasing from $550 billion at the recession’s start to nearly $1 trillion at the beginning of this year,” notes a recently published congressional study by the Joint Economic Committee.
Congress is currently debating legislation that would prevent the interest rates on Stafford loans from increasing to 6.8%. The new interest rate takes effect on July 1 unless Congress reaches a deal before then.
"If we can't get a long-term solution, we should get a deal that prevents rates from doubling," Rep. Karen Bass, D-Calif., told CBS News.
The rising costs of tuition leave some students struggling to find ways to pay for their education. The financial aid application process is separate from the admissions application. Students may qualify for Pell grants or low cost Stafford loans.
The Free Application for Federal Student Aid is an online form that must be completed on the FAFSA website. Each college has its own federal financial aid code and application deadline for priority funding. This information is generally published on each college’s financial aid website.