Jul 20, 2012 at 8:43 am
ST. CLOUD, MN (KNSI) - Sixth District Congressional candidate Jim Graves says he supports a five-year freeze on federal student loan interest rates.
Reasoning that, much like a business students need to know what their expense outlook will be for a set time forward, Graves said, locking in interest rates for five years would be a step in the right direction.
"I'm in business I know what it takes to build a business and bring people together. I also know that we have to invest in the future," Graves said, speaking at a news conference on the St. Cloud State campus. "Students need to know what their cost of capital is as well, they need to have access to good affordable loans to be able to provide the support...so they can go to school, study and become very, very strong members of this society."
To highlight his claim, Graves enlisted the help of a current SCSU student struggling with his own finances. Chris Hage is having trouble paying for his undergraduate education while balancing a full time work load. Hage said he takes out loans upwards of seven thousand dollars each semester.
"Unfortunately, this no longer covers the tuition that I need. As tuition has gone up access to student loans are going down," Hage said. "This has caused me to work full time and caused me to pay less attention to my education. And unfortunately that is just not fair."
Graves says there would be a monetary cost to locking in interest rates for five years, but he says the cost of having a non-educated workforce would be much higher.
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