Oregon may have solved the student loan crisis
Last week Congress allowed the interest rate on subsidized federal Stafford student loans to double from 3.4 percent to 6.8 percent. This was just the latest in a series of indignities for students, whose debt burden has skyrocketed to $1 trillion as higher education costs continue to climb upward. Faced with a lifetime of crushing debt they cannot escape—student loans cannot be refinanced or discharged in bankruptcy, and even their Social Security payments can be garnished—these borrowers often delay the major purchases that drive growth, like houses or automobiles. Even the Federal Reserve has cited student debt as a drag on the U.S. economy.