Right Major + Right College = Career Success - Helping you get where you were meant to be.
RSS Follow Become a Fan

Delivered by FeedBurner


Recent Posts

Pulling all the pieces together
Just what are you paying for?
Needlessly spent money
Hit enter, please
Is your teen looking for Club Ed?

Most Popular Posts

Essay Topic: What will you contribute to our campus?
Got an IEP? Don't forget to take it to college.
Discouraging Words
Will Social Media Affect Your Child's Chances?
What to do when things change

Categories

Admission Decisions
Admission Essays
Adult Students
Campus Safety
Career Planning and College
Choosing the best college for you
College Admission Deadlines
College Admission Decisions
College Admission Essays
College Admission Tests
College application process
College Applications
College Buyer Beware
College Camp
College Choice
College Costs
College Entrance Exams
College Freshman Adjustment
College Graduation and Beyond
College Major
College Myths
College Prep
College Prep Opportunities
College Recruitment
College Scholarships
College succcess
College Transfer
Early preparation for college
Education Consumerism
FAFSA
FInancial Aid
Financial Aid and Scholarships
GAP Year and Summer Programs
Getting in....or not
Good advice
Grad School
Graduate to a Job
Highly Selective Colleges
IEP
It's all in the timing
Jobs
Kids Today
Learning Disability Accommodations
Maturity
Media Treatment of College Information
Money and College
MOOC
Moolahversity
Online College
Parent and Grandparent Support
Parent and Grandparent Support in the College Process
Parent and student relationships in the college process
Parenting Teens
Picking a college
Planning for College Success
Positioning Students for Success
SAT and ACT
Scholarships
Social Media and College
Start Planning Early
Student Development
Student Loan Debt
Student Loans
Student Posts About Their Experiences
Success Hints
Summer Activities
Summer college prep
Surviving fall semester fo the senior year
The College-Job Connection
The Junior Year
To-do lists
Transcripts
Value of College
powered by

College Talk Blog

July 1 interest rate increase is significant

On average, kids graduate from college in the US with $23,000 to $27,000 in student loan debt. They graduate into a slow but improving economy where pay is often lower than their expectations. Their student loan payments take a healthy bite out of already low paychecks.
 
Student loans are an important resource for students allowing students from all socioeconomic groups access to post high school education. At the current 3.4% interest rate, the subsidized student loan is a good deal. The unsubsidized loan for undergraduates at 6.8% is a little steep.  So is the 6.8% interest charged to parents and to grad students for Direct Plus loans.
 
With subsidized loan interest rising to the same 6.8% interest level of unsubsidized loans on July 1, the interest on all student loans will be the same-too high. There are those who say it is not a big deal because the monthly payment for a student only rises $38.32.  But over the 10 year repayment timeframe, the student is paying over $4,000 more for his loan.
 
In a country that needs to increase the number of science, technology, medical and other professionals, we need to find ways to keep interest rates low for students.  The US government will save over sixty million dollars over the next decade due to the conversion from a bank centered student loan program to a government centered program.  Student loan defaults have declined since the government took over the loan program. With these savings, surely we can find a way to support our students at lower cost to them and their families.
 
 

2 Comments to July 1 interest rate increase is significant:

Comments RSS
Stock Tips Provider on Wednesday, July 15, 2015 5:27 AM
The US government will save over sixty million dollars over the next decade due to the conversion from a bank centered student loan program to a government centered program
Reply to comment


MCX Commodity Trading Tips on Wednesday, January 13, 2016 4:05 AM
I really appreciate this blog is very informative; I have come to know here many news points about interest rate.
Reply to comment

Add a Comment

Your Name:
Email Address: (Required)
Website:
Comment:
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment