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Rates For Student Loans To Double July 1

Monday, May 6, 2013 - 7:49 AM
Now would be a good time to watch interest rates — and Congress — if you're planning on tapping into the federal student loan program to send your incoming freshman to college.

That's because rates on new subsidized Stafford loans are scheduled to double July 1, from a fixed 3.4 percent to 6.8 percent. Stafford loans, which don't require repayment until six months after leaving school, account for more than a third of federal student aid.

The U.S. Public Interest Research Group, a consumer advocacy organization, estimates a doubling of interest rates could add $1,000 more to the cost of the loan per year per borrower.

Rates for student loans to double July 1 | The Detroit News | detroitnews.com
3
ShorebreakShorebreak2,700 posts since
Apr 6, 2010
Rep Points: 14,635
1. Monday, May 6, 2013 - 9:12 AM
Explain to me again how the SL rate can double in this low-interest climate??
1
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
2. Monday, May 6, 2013 - 11:34 AM
Re: 51hh @ 1. Monday, May 6, 2013 - 9:12 AM

One word explanation: CONGRESS!
2
ShorebreakShorebreak2,700 posts since
Apr 6, 2010
Rep Points: 14,635
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