U.S. Student Borrower Advocates Say Tying Rate to Market Risky

President Barack Obama’s budget proposal tying student-loan interest rates to the market is drawing criticism from education advocates because there’s no cap to protect borrowers when rates climb.

While the cost of borrowing in general today is low, there is a long-term risk for students, said Jennifer Mishory, deputy director of Young Invincibles, a Washington-based nonprofit group that advocates for the interests of 18-to-34 year-olds.