What the U.S. could learn from Australia’s student loan program
What the U.S. could learn from Australia’s student loan program
The interest rate on new federally subsidized student loans doubled on Monday from 3.4 percent to 6.8 percent. Congress may work out a deal in the next two weeks to soften the blow. But left as is, the interest rate hike could cost the average student $2,600. Yet critics say the larger problem is the level of the debt itself, which can be crippling. Is there a better way?
Bruce Chapman, economist at the Australian National University in Canberra, is the architect of a system that’s attracting some attention in Washington, DC. He joins Marketplace Morning Report host David Brancaccio to discuss Australia’s “study now/pay later” formula.
Stories You Might Like
As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.
Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.
Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.
