Make Higher Education Affordable

U.S. PIRG Higher Education Director Chris Lindstrom calling on Congress not to double the student loan interest rate.

Student Debt Is Skyrocketing

Higher education in America continues to be critical for both individual success and the social and economic health of our country. While college attendance has grown over the past two decades, state appropriations and federal aid have failed to keep pace with the rising cost of college, shifting more costs to students. As a result, more students than ever must rely on student loans to pay for a college degree, with the average borrower now graduating with over $26,000 in loan debt.  

Heavy student loan debt carries negative consequences for borrowers, who must make monthly payments with their hard-earned dollars rather than save up and get ahead. High debt can affect where graduates live, the kind of careers they pursue, when they start a family or purchase a home, and whether they can save for retirement. The combination of high student debt and low earnings can lead to default, ruined credit and wage garnishment. Such distress runs counter to the goal of higher education.

The U.S. PIRG Higher Education Project is working to:

1. Keep loans affordable: This July, interest rates will double on the subsidized Stafford loans that almost 8 million students use to pay for school. U.S. PIRG is campaigning to prevent interest rates from doubling and advocating for more and better repayment options once a student graduates. 

2. Increase grant aid to students, such as the Pell Grant: The Pell Grant is the federal government's cornerstone financial aid program, providing scholarship aid to almost 10 million students of modest income each year. U.S. PIRG is making sure that every student can rely on their grant to stay in school and make it to graduation.

3. Make textbooks affordable: Textbook prices are rising four times faster than inflation, leaving the average student now paying over $1,100 every year for textbooks. After working to end many tricks the publishing industry used to increase prices unfairly, U.S. PIRG is fostering real competition in the textbook market place by promoting more affordable options like open textbooks and open education resources.

Issue updates

News Release | U.S. PIRG | Higher Ed

Students React to President's Budget Proposal on Student Loans

While the President’s budget keeps rates low in the near term, we’re disappointed that it risks sky-high interest rates in the long term. The structure of the proposal switches student loan interest rates from a fixed rate to a rate that varies with the market, allowing students to take advantage of temporarily low rates, but offers no protection for students when rates inevitably begin to climb.

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News Release | U.S. PIRG | Higher Ed

Federal Government Makes Billions from Student Loan Borrowers Yearly

Today, a coalition of youth and student groups released an issue brief demonstrating that the federal government is making billions in revenue through the federal student loan program. The report projects that student loans will generate over $36 billion in revenue in 2013, in part because of a scheduled July 1 doubling of Stafford loan interest rates.

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Report | U.S. PIRG | Higher Ed

Issue Brief: Don't Double Our Rates

Congress should be helping to keep college affordable, not making it more expensive for student loan borrowers to pay for college.

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Media Hit | Higher Ed

New York Times: Student Loan Rate Set to Rise, Despite Lack of Support

“Higher education loans are meant to subsidize the cost of higher education, not profit from them, especially at a time when students are facing record debt,” said Ethan Senack, the higher education advocate at the United States Public Interest Research Group.

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Blog Post | Higher Ed

Students to Congress: Don’t Double Our Rates | Chris Lindstrom

Earlier this week, the Education and Workforce Committee in the U.S. House held a hearing to purportedly “strengthen” the federal student loan program. Sadly, the proposals put forth by leaders in the hearing do anything but help solve the problem of high cost federal student loans. What the hearing did do was serve as a grave reminder that on July 1, student loan interest rates on subsidized Stafford student loans will double from 3.4 percent to 6.8 percent—driving up the cost of higher education for 8 million students by $1,000 per loan.

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News Release | U.S. PIRG | Higher Ed

143,000 Students to Lose Their Pell Grant Next Year

On Friday, Congress passed the FY2012 appropriations bill, changing eligibility requirements for Pell grants eliminating about 143,000 Pell Grant recipients from the program next year.

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News Release | U.S. PIRG Education Fund | Higher Ed

Consumer Financial Protection Bureau Takes First Step to Protect Students but Hamstrung from Going Further

Today the Consumer Financial Protection Bureau (CFPB) announced a new initiative to improve financial literacy tools for students before they enter college.

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News Release | U.S. PIRG Education Fund | Higher Ed

Obama Announces Initiatives to Ease Student Loan Debt

Tomorrow, President Obama will announce a series of initiatives that will reduce the burden of student loan debt that millions experience after graduation.

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News Release | U.S. PIRG Education Fund | Higher Ed

Department of Education Rule to Rein in Abuse at For-Profit Colleges Doesn’t Go Far Enough

Yesterday, the US Department of Education took the first step in reining in abusive practices at for-profit colleges which pile deep debt onto their students in exchange for questionable credentials.  It issued a new rule that sets a standard for these schools: their programs have to ensure graduates can earn enough to pay off the hefty student loans they must carry to pay for their enrollment.

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News Release | U.S. PIRG | Higher Ed

New in The Huffington Post: Ryan's Budget Is A Wolf In Sheep's Clothing, Preying On Student Aid

Chairman Ryan's budget is a wolf in sheep's clothing. Preying upon genuine concern for our fiscal future, this budget takes direct aim at student aid programs that help job-seekers get the skills, training, and credentials they need to re-enter the recovering workforce.

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News Release | U.S. PIRG; Student PIRGs

The Biden administration released its $1.8 trillion American Families Plan Wednesday with investments ranging from paid family leave and childcare to higher education. One key element to the plan is an $85 billion increase to the Pell Grant, a need-based financial aid program for low and middle income students.

News Release

New Secretary Cardona to forgive loans for some borrowers whose schools shut down

Blog Post

Some student loan servicers take advantage of borrowers through unfair, predatory and even illegal lending methods. It’s a problem MASSPIRG and our partners have been working to solve for years — and our efforts were rewarded this past January, when the Student Loan Borrower Bill of Rights was passed by the Legislature and then signed into law by Gov. Charlie Baker. Nearly 1 million student borrowers across the commonwealth now have the protections they deserve against deceptive lending practices.

Report | U.S. PIRG Education Fund

 COVID-19 has raised the barriers students face both financially and technologically to access course materials, even if it has not necessarily made course materials more expensive. Students who lost jobs due to the pandemic or who lacked reliable internet access were hardest hit by course materials costs. These problems will persist past the public health crisis without increased funding and implementing long term policies that prioritize access and affordability.

Blog Post

A survey on college textbook affordability during COVID-19.

Higher Ed

Student groups urge Congress to support higher education funding during COVID-19 crisis

Sixteen student groups from across the country have outlined ways Congress can support higher education needs during the COVID-19 crisis. The guidelines include increasing funding for Pell Grants, expanding access to affordable course materials, and providing relief for those struggling with student loan repayments.

 

Higher Ed

Fixing the Broken Textbook Market

The high price of college textbooks remains one of the most significant out of pocket expenses for students, and there has been little measurable improvement in key textbook affordability measures over the last six years. 

 

Higher Ed

Textbook merger fails to get approval from U.S. Department of Justice

In a win for college students, textbook publishers Cengage and McGraw-Hill stopped their merger after failing to get approval from the U.S. Department of Justice. We still have a long way to go, however, to ensure students have access to more affordable course materials.

 

Higher Ed

Lawmakers freeze student loan repayment during the coronavirus outbreak

As hours are reduced and more service, retail and hospitality jobs are lost to the COVID-19 pandemic, many Americans—including many student loan borrowers—are struggling to make ends meet. We commend federal lawmakers for putting a freeze on student loan repayments during this time of crisis. 

 
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