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In a couple of months, students will face a dire situation and may have to pay double the interest rate on their loans. Many students and parents are hugely concerned about this situation. Education activists too are lobbying to prevent this dire situation of soaring student debt.

According to a junior from Sonoma State University Patrick Maloney, the situation is disappointing and borders on the ridiculous. He opines that there is no complete support for higher education says Maloney who is also involved in lobbying efforts to bring awareness to this issue.

On Stafford loans that are subsidized, the current 3.4 per cent rate will be extended indefinitely by a resolution passed by US Senate. However, as per the current schedule, July 1st is the deadline when the rates on these loans will double to 6.8 per cent as allowed by the budget plan of the House of Representatives.

Cap on all student loans will be lifted by our president’s budget proposal. This will lead to a situation where by the 2013, rates on unsubsidized loans will touch 8 per cent based on projections released by the Congressional Budget Office.

Director of financial aid, SSU Susan Gutierrez says that most students are parents are hugely concerned about this situation. Parents feel that realistically thinking, in the present scenario, it is definitely not possible for most to put their children through college without taking massive student loans.

Similar situation was faced by the Congress last year when the current rate of 3.4 per cent was extended for another year till July 1st 2013. Chance of a similar step is minimal this year as there are no major political stakes involved.

Institute for College Access and Success President Lauren Asher is still optimistic and says that last year the announcement to freeze the rate for another year came at the last minute. Maybe it will be repeated this year too offering relief for parents and students.

Rise in the rate of interest is a serious issue and will impact a majority of our students who are already short of funds to complete their education. Considering that a rise in the rate of interest for Stafford loans will affect families of both the Republicans and Democrats, maybe we still have a chance.

Our fiscal constraints are however uncompromising and this may make it extremely difficult for our political leaders to contest these traditionally bipartisan issues. All we can do is to wait and see what happens. The wait is excruciatingly painful for students. Along with their families, they are waiting with bated breath to see if there will be efforts to bring about a mutually beneficial balance.

Will our president deliver yet again like he did last year in this issue? Will the fact that there are no stakes involved this year make any difference to his genuine wish to see more number of students graduating in our country? We can only adopt a wait and watch approach and hope for the best.