King calls for privatizing the student loan system - KTIV News 4 Sioux City IA: News, Weather and Sports

King calls for privatizing the student loan system

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SIOUX CITY, Iowa (KTIV) -

The cost of college has been a hot button issue in Washington this week, as the federal student loan interest rate doubled.

The interest rate on new subsidized Stafford loans doubled to 6.8%.  The rate hike is expected to impact seven million students who need the loans for the coming school year.
    

Iowa Republican Congressman, Steve King, says he wants to see the private sector put back into student loans so competition in the market would keep the interest rates down.

"We are borrowing money to pay down student loan interest rates and we are adding it to the national debt and the same students who are getting a discount on their interest rate for their student loans are going to be the ones paying the interest on the national debt and paying off the taxes," says Congressman Steve King.  "So it's kind of a pay me now, pay me later type of thing.  We need to find the right balance.  I want to see it with competition in it to keep those rates lower and that's where I hope we end up with a solution."

King says he's confident that Congress will come to a compromise on the student loan issue before their August break.

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