Comprehension: Congress Student Loan Fight Could Leave Graduates with More Debt

Graduating from university is a time to celebrate, but millions of Americans are also leaving full-time education this summer owing massive amounts of money, and in sore need of a job. Meanwhile, if Congress fails to act in the coming weeks, interest rates for student loans from the government are set to rise even higher.

Watch the video and answer the questions below.  
Decide if the statements are True or False.

1. Greg Dubé has a debt of $15,000.
a. True
b. False

2. The price of houses has gone down.
a. True
b. False

3. Renea Gooch is over thirty years old.
a. True
b. False

For transcript and answers see below.

Transcript and Answers:

Greg Dubé graduated this summer with a degree in chemical engineering. It’s an education that hasn’t come cheap, leaving him $150,000 in debt. He thought it would be an investment that would put him ahead in the job market but so far, things haven’t quite worked out that way. 

“I figured I would have a job where I would start right after graduation - maybe have a week off or two weeks off.  You don't see it on my face but it's stressful. It's something that I deal with more in my own time and it's something that I consider almost every night just reminding myself ‘OK, I have this amount, I need to make sure I do something about it.’” 

Greg’s one of thousands of graduates who question the fairness of the US student loans system, where private lenders can charge steep rates. 

 “The housing market is down to three, four percent, but student loans where we have no income or no considerable income at least not yet, we’re still being charged more than double that.” 

The bad news for students is that government-backed loans could also see a price hike next month when the current funding model expires. Republicans and Democrats are trying to forge a compromise that would see interest rates linked more closely to market rates. But some activists say that while the proposals would save the government money, many borrowers would be charged more. 

“Because of the economics of the situation right now, we would be accepting - allowing - the Federal Government to make 36 to 50 billion dollars off the backs of students over the course of the next ten years.” 

Renea Gooch knows the long-term cost of debt better than most, graduating with a degree in molecular biology at the height of the financial crisis in 2008, she says that even now that she’s got a good job; her debt burden is weighing her down.

 “I’m in my mid 30s, and I still live with roommates.  I’m not really seeing anyone and if I were there’s no way I could possibly afford to get married at the moment. I can’t really think about having children either which is kind of scary considering my age.” 

With the Federal Bank of New York finding that 30 year-old graduates with loans are less likely to have a mortgage than those without student debt, the worry is that if America can’t find better ways to pay for higher education, the whole economy could lose out. 

Answers:
1. b
2. a
3. a

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