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Thread: Student Loan Rates Double After Congressional Inaction

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    Student Loan Rates Double After Congressional Inaction

    WASHINGTON — College students taking out new loans for the fall term will see interest rates twice what they were in the spring – unless Congress fulfills its pledge to restore lower rates when it returns after the July 4 holiday.
    Subsidized Stafford loans, which account for roughly a quarter of all direct federal borrowing, went from 3.4 percent interest to 6.8 percent interest on Monday. Congress' Joint Economic Committee estimated the cost passed to students would be about $2,600.

    Efforts to keep interest rates from doubling on new Stafford loans fell apart last week amid partisan wrangling in the Senate. Democratic senators and the White House both predicted that a deal would be reached in Congress to bring the rates down again before students return to campus.
    But if an agreement remains elusive, students could find themselves saddled with higher interest rates this year than last.


    Read more @: Student Loan Rates Double After Congressional Inaction

    Yayy! My loans just doubled! If a deal isnt reached loans for many others and mine will also double! This is very upsetting, and hard to even believe!


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    Re: Student Loan Rates Double After Congressional Inaction

    Yep. Harry Reid really dropped the ball on this.

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    Re: Student Loan Rates Double After Congressional Inaction

    Quote Originally Posted by TheDemSocialist View Post
    Read more @: Student Loan Rates Double After Congressional Inaction

    Yayy! My loans just doubled! If a deal isnt reached loans for many others and mine will also double! This is very upsetting, and hard to even believe! [/FONT][/COLOR]
    The only loans that are doubling are NEW loans. So, unless you're borrowing MORE money? You're good.

    Nonetheless, I think it's AWFUL!!!!!!! When banks can borrow from the Fed at near-zero, they don't need 6.something% on a guaranteed loan. Our government should be ashamed.
    The devil whispered in my ear, "You cannot withstand the storm." I whispered back, "I am ​the storm."

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    Re: Student Loan Rates Double After Congressional Inaction

    Mine are already at 6.8 and 7.9. Graduate loans receive no subsidies.

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    Re: Student Loan Rates Double After Congressional Inaction

    Quote Originally Posted by TheDemSocialist View Post
    Read more @: Student Loan Rates Double After Congressional Inaction

    Yayy! My loans just doubled! If a deal isnt reached loans for many others and mine will also double! This is very upsetting, and hard to even believe! [/FONT][/COLOR]
    I don't really feel too bad about it, since apparently rates dropped sharply after I got out of school, since mine were around 6-7%. I paid them off just fine, others will too as long as they aren't wasting the money on a useless degree with no hope of employment that pays well.
    If you build a man a fire, he'll be warm for a day.

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    Re: Student Loan Rates Double After Congressional Inaction

    Quote Originally Posted by molten_dragon View Post
    I don't really feel too bad about it, since apparently rates dropped sharply after I got out of school, since mine were around 6-7%. I paid them off just fine, others will too as long as they aren't wasting the money on a useless degree with no hope of employment that pays well.
    Yep. Historically that is still a very, very good interest rate for an unsecured loan. As with any gov't "goodie", once established it becomes expected to last forever.

    FinAid | Loans | Historical Interest Rates
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    Therefore all progress depends on the unreasonable man.” ― George Bernard Shaw, Man and Superman

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    Re: Student Loan Rates Double After Congressional Inaction

    Quote Originally Posted by TheDemSocialist View Post
    Read more @: Student Loan Rates Double After Congressional Inaction

    Yayy! My loans just doubled! If a deal isnt reached loans for many others and mine will also double! This is very upsetting, and hard to even believe! [/FONT][/COLOR]
    Perhaps it's nit-picking, but your loan didn't double, just the cost of servicing the loan doubled. Instead of paying $3.40 per $100 annually, you'll pay $6.80 per $100 annually.

    Your main source of pain is the various institutions who are grossly overcharging for the services they provide.
    "Liberals claim to want to give a hearing to other views, but then are shocked and offended to discover that there are other views." William F. Buckley Jr.

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    Re: Student Loan Rates Double After Congressional Inaction

    Quote Originally Posted by MaggieD View Post
    The only loans that are doubling are NEW loans. So, unless you're borrowing MORE money? You're good.

    Nonetheless, I think it's AWFUL!!!!!!! When banks can borrow from the Fed at near-zero, they don't need 6.something% on a guaranteed loan. Our government should be ashamed.
    I could be wrong Maggie, but didn't Obama and the Democrats pass legislation to take the banks out of the student loan business and make it a government monopoly? Wasn't that supposed to make borrowing easier and less costly?
    "Liberals claim to want to give a hearing to other views, but then are shocked and offended to discover that there are other views." William F. Buckley Jr.

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    Re: Student Loan Rates Double After Congressional Inaction

    Quote Originally Posted by TheDemSocialist View Post
    Read more @: Student Loan Rates Double After Congressional Inaction

    Yayy! My loans just doubled! If a deal isnt reached loans for many others and mine will also double! This is very upsetting, and hard to even believe! [/FONT][/COLOR]
    Whatever man, you don't need to be educated. Education just increases the likelihood that you'll question the government anyway. The NSA says that's bad.
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    Re: Student Loan Rates Double After Congressional Inaction

    Quote Originally Posted by CanadaJohn View Post
    I could be wrong Maggie, but didn't Obama and the Democrats pass legislation to take the banks out of the student loan business and make it a government monopoly? Wasn't that supposed to make borrowing easier and less costly?
    I don't remember that, CJ. Not sure.

    Okay, I Googled around and found this:

    The President signed a new law that makes it easier for students to pay back their federal college loans. Starting in 2014, new borrowers will pay no more than 10 percent of their disposable income, and the President recently proposed accelerating this benefit for current students. The law also allows any remaining debt to be forgiven after 20 years. Those engaged in public-service professions—such as teachers, nurses, or members of the armed forces—will have any remaining debt forgiven after 10 years if they make their payments on time.
    Student Loan Reform — President Obama’s Record — Barack Obama

    Not a bad deal either.
    The devil whispered in my ear, "You cannot withstand the storm." I whispered back, "I am ​the storm."

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