Tuesday, July 2, 2013

College Student Loans to Double Interest Rates

Congress failed to reach an agreement before their holiday vacation this week to set student loan interest rates at a level that doesn't pile up more college costs for those who have to borrow big money to attend college.

Stafford subsidized loans will jump from 3.4 % to 6.8 % and that means that unsubsidized loans will jump even higher. Estimated cost to students will be $2,600. Part of the problem is that some in Congress want the private sector to make the loans rather than the federal government, which adds additional costs because of its "requirement" for high levels of profit on the loans. Now let's see, how much profit between interest you get at the bank and 6.8%?

We're telling members to advise students that interest rates are going up," said Justin Draeger, president of the National Association of Student Financial Aid Administrators.
Both sides are promising a "deal" after the fourth, how good will that be for those of us with kids in college?  See more in the AP story out today.  Student Loan Rates Double

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