student loans

Outstanding student debt is up to $1.2 trillion, a jump of $100 billion from only a year ago.

This week Senator Elizabeth Warren called the ballooning debt unacceptable and proposed a bill that would allow most students to refinance their debt at government subsidized rates, which are now just under four percent.

Most of the students — though saddled with debt — don’t dispute that they are obligated to pay it back. But that’s not the case for 15 students who attended the for-profit Corinthian Colleges around the country.

FAFSA forms
Brian Hardzinski / KGOU

A University of Central Oklahoma finance professor says the increasing cost of borrowing to pay for higher education has negative long-term economic effects.

U.S. Sen. Tom Coburn (R-Okla.)
U.S. Senate

U.S. Sen. Tom Coburn (R-Okla.) is part of a bipartisan group of eight senators announcing a deal that lets students avoid higher interest rates on federal loans.

The bipartisan group of senators on Thursday told reporters they've reached a compromise to lower the rates for students who borrow from the federal government.

The rates would be linked to financial markets, meaning interest rates would climb in coming years — but with a limit on how high the rates could be.