Obama keeps interest rates at 3.4%

[Optomchick]

http://www.huffingtonpost.com/2012/...7323.html?utm_hp_ref=fb&src=sp&comm_ref=false

Any thoughts?

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[DrMidlife]

3.4% is undergrad only. Staffords for grad/professional stay at 6.8%. Grad Plus is 7.9%.

If your school's cost of attendance is over the Stafford limit ($20,500 for grad/professional, $40,500 for med school) and you have to borrow full cost of attendance, then you'll have loans at 6.8% and 7.9%.

Interest starts accruing during school now - there are no subsidized Staffords for grad/professional.

http://studentaid.ed.gov/PORTALSWebApp/students/english/recentChangesSA.jsp

 

[freaker]

http://www.huffingtonpost.com/2012/...7323.html?utm_hp_ref=fb&src=sp&comm_ref=false

So I'm happy about the 3.4% but what consequences will taking out the 6-month deferment mean for our loans adding up...what if they raise the interest rate after next year...would we have 2 loans at different rates? Any thoughts?

It should be noted that the rates were set to increase by his own healthcare bill that came with a number of assorted goodies such as the above. This is pure political posturing (now he gets credit for saving interest rates but was the one increasing them in the first place, if you give him credit for the healthcare bill that I doubt anyone has even read, yet), but yes, undergrad loans will continue to remain at 3.4% and tuition rates will continue to climb. And say goodbye to subsidized loans.

And yes, it's correct that rates on grad school loans remain at 6.8% with interest rates at near record lows on loans that can't be defaulted upon. Such a bargain... It's also true that as states begin assuming greater expenses based on new regulations that they will need to continue to make cuts to state university systems, all but ensuring ongoing increases in tuition rates. I won't be contributing to this nonsense and will not be giving a dime to my undergrad institution after they have more than doubled tuition rates since I graduated.

The can continues to be kicked down the road, and quite intentionally that way I look at it.

 

[DrMidlife]

Crying over the "loss" of 3.4% is a complete red herring. The interest rate would be a tiny little thing if tuition hadn't gone up by magnitudes. You can lay nearly even blame in the laps of every president and every congress back to FDR for the way education is financed in the US.