With New Report Revealing Rising Debt Load for Ohio Graduates, Sen. Brown Launches Website for College Students, Graduates, and Their Families to Share Their Stories

WASHINGTON, D.C.—With a new report showing that Ohio students who borrowed to finance their bachelor’s degrees graduate with an average debt of $29,278, U.S. Sen. Sherrod Brown (D-OH) launched a new page on his website through which Ohio college students, graduates, and their families can share their student loan stories. Brown will collect stories on his website, brown.senate.gov/CollegeLoanStories, and share stories on the Senate floor. More than 360,000 students across Ohio are at risk of having their interest rates double for Stafford loans unless Congress acts by July 1, 2013. The Student Loan Affordability Act would maintain the current interest rate on subsidized Federal Direct Stafford Loans for two years, which is set at 3.4 percent, and prevent a hike to 6.8 percent scheduled for July 1^st.

“As the July 1^st deadline fast approaches, this fight is far from over. That’s why I’m encouraging students and their families to share their student loan stories on my website at brown.senate.gov/collegeloanstories, Tell me what low student loan rates have meant to your ability to afford college. Tell me how you would be affected if you had to pay more in student loan costs once you graduate. I’ll be collecting your stories and sharing them on the Senate floor and with my colleagues,” Brown said. “Already, recent college graduates are struggling to find work, with half of young college graduates jobless or underemployed. Allowing the interest rates on federal student loans to double is a step backwards. Ohio students—and our economy—can’t afford this sucker-punch at a time when we need to be doing more to get our economy back on track.”

Student debt now exceeds $1 trillion—exceeding credit cards and auto loan debt, and is second only to mortgage debt for Americans. While student debt is not exclusively made up of loans that will reset, subsidized Stafford loans are often a primary component of student aid packages for low income students. On July 1, the interest rate on subsidized Stafford loans will double, costing an additional $1,000, per subsidized Stafford loan. This affects more than 7 million Americans and more than 360,000 Ohioans. Brown shared a report on the approximate number of students at each college and university in Ohio that utilize subsidized Stafford loans which can be viewed HERE. Brown’s report includes the number of subsidized Stafford loans for graduate and undergraduate students by Ohio institution, though the legislation only affects undergraduate Stafford loans.

Brown’s legislation will secure low interest rates until the reauthorization of the Higher Education Act, which expires at the end of this year. The Student Loan Affordability Act would lock in lower rates for students for two years as Congress works on a long-term and sustainable approach for the federal student loan program that works for both students and taxpayers.

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