Blogs:

Our President is again on demand as our student advocates and democrats are looking up to him to do something about the skyrocketing college loan interest rates. There is a strong hope that the issue that won him the 2012 elections will again gain center-stage.

July 1st is when the interest rates are going to double and everyone is looking up to President Obama to get the Congress to intervene. Millions of students rely heavily on these loans to fulfil their higher education dreams.

Last year, inaction on the part of Congress proved to be an advantage for Obama as he forced lawmakers to extend low interest rates for a year. It is now time again for action but sadly the push is subdued this year with no election pressure and campaign spotlight.

There is evident optimism among advocates urging for extension that rates will once again be held in the April 10 budget. Last year, the President wanted a more permanent solution to the issue and the only way he can do something about is through the budget. This is why many are waiting with bated breath for positive results in this regard.

According to Rep. Joe Courtney, the issue would certainly have to be pressed with the approaching deadline. In 2012, he sponsored the legislation to refrain from hiking rate and is all set to do the same again. He put forth the threat of a larger rate hike to the administration earlier this month.

Joe Courtney says that the administration is certainly aware that this is a huge issue to be dealt with as they took time to meet him only for this and did not talk about other issues. This is an encouraging sign.

Obama has time and again reiterated that he will address higher education related borrowing in a comprehensive manner. However it is not as easy because the budget can be balanced only by allowing rates to climb at least in a decade.

The White House will certainly be alone in other budget plans and not have any company if they insist on pushing for lower rates for new students. There has been a lot of support from Senate Democrats to lower higher education loan interest rates in their budget. However, they did not plan enough to address the issue which means they did not put any funds aside to balance the overall budget.

The skyrocketing interest rates will apply for Stafford student loans. These subsidized loans were taken mostly by new students joining college. In the academic year 2010-2011, at least 7.5 million students benefited from these loans out of over 36 million borrowers, says the Department of Education statistics.

Stafford loans are highly subsidized which means they are disbursed strictly based on financial needs of students. Through these loans, early deferment and interest costs during college years are covered by the government.

Last summer, loan price hike was a fertile ground for our President to strengthen his campaign. He seized the rate-hike deadline and capitalized on it by hammering the need to avoid the hike during his mini college tour. All we can do is wait and see what he has to say this year.