College Cost Reduction and Access Act of 2007

Discussion in 'Pre-Medical - MD' started by moe_4eva, May 13, 2008.

  1. moe_4eva

    moe_4eva doprepd on my haed

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    Not sure if anyone else has heard anything about this, but it sounds like good news. I received a letter from the owner of my student loans stating the following:

    Not sure if the interest rates for unsubsidized and grad plus loans will be similarly reduced, but I would assume they will go down as well since they tend to follow the same trend as the subsidized loans. There may be something I'm missing, but I hope not. If all of our loans will go down, this will be excellent news for those of us worrying about repaying our student debt, and bad news for those rouckous rousers that are saying it's not worth going into medicine anymore due to the cost.
     
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  3. WaterBottle

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    this specifically says 'undergraduate' so i'm assuming they're explicitly leaving out grad/med school loans. or else they'd just write 'federal stafford loans.' i hope i'm wrong!
     
  4. moe_4eva

    moe_4eva doprepd on my haed

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    Sorry, the notice I received did not mention undergrad specifically, I just typed it in by mistake since it was sent to me by my undergrad loan holder. I believe that this is for all stafford subsidized loans unless I'm mistaken. I fixed it in the quote.
     
  5. kronickm

    kronickm even par.

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    The difference in cost to you by having your interest rate dropped from say 6% to 4% on $180,000 in loans is minimal. Combine that with the fact that residents make chump change and medicine is still not the wisest move financially. I know electricians who started in the union when they dropped out of high school sophomore year who have been making $50 an hour since then. They will probably retire with more money saved than I will if I go into medicine. It is not worth going into medicine for the money anymore.

    All that aside, this is a pretty nice bill. :thumbup:
     
  6. curious lately

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    Actually I'm afraid it is only for undergrads. Here is quote from http://www.nasfaa.org/publications/2007/G2669Summary091007.html


    TITLE II - STUDENT LOAN BENEFITS, TERMS, AND CONDITIONS
    Sec. 201. Interest Rate Reductions

    The bill gradually cuts interest rates on subsidized Stafford loans for undergraduate students in half according to the following schedule:
    • 6.8 percent for loans first disbursed July 1, 2006 to July 1, 2008
    • 6 percent for loans first disbursed July 1, 2008 to July 1, 2009
    • 5.6 percent for loans first disbursed July 1, 2009 to July 1, 2010
    • 4.5 percent for loans first disbursed July 1, 2010 to July 1, 2011
    • 3.4 percent for loans first disbursed July 1, 2011 to July 1, 2012
     
  7. xanthomondo

    xanthomondo nom nom nom
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    According to the AES website calculator:

    $180,000 at 6% for 360 months = $1,079.19 per month (total cost = $388,508.40)
    $180,000 at 4% for 360 months = $859.35 per month (total cost = $309,366.00)

    Difference = $79,142.40

    Dropping the interest rate 2% will save you a Porsche, which I don't think is minimal
     
  8. 8744

    8744 Guest

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    The reason college is so expensive, and why tuition increases at many times the rate of inflation, is precisely because student loans are so easy to get. Most students at most universities are just sheep who are fleeced every year for as much government money as possible while they are warehoused in useless and incredibly non-rigorous degree programs.

    If federal dollars were curtailed the price of higher education would go down like a French hooker on German Soldier Appreciation Night. Unfortunately, many of you, your parents, and the public buy into the hype.
     
  9. 8744

    8744 Guest

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    In other words, higher education is over-rated, useless for most people, and not much better than an extension of our crappy public high schools. I graded papers as a graduate student many, many years ago and many of the entering freshmen were only a couple dozen words shy of illiterate.
     
  10. Vanguard23

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    How can you judge higher education as a whole by using an anecdote of when you graded papers of people just coming into said higher education? Not only is it anecdotal, but you're grading papers of incoming Freshmen. In so far as you put it, higher education institutions weren't being described.
     
  11. 8744

    8744 Guest

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    The fact that a major state university will accept students who are illiterate illustrates that there are no academic standards that will not be subverted to keep the warm, cash-laden bodies flowing. Garbage in, garbage out. A college freshman who reads on a third grade level and cannot spell, conjugate, or even manipulate a pen to form legible letters is not going to be transformed into a scholar. So sorry. They are just processed in the higher-education machinery until they are spit out with a degree in Leisure Studies or Psychology.

    There are a few academic powerhouses that have high admission standards. But there are something like 5000 colleges and universities in the United States and there are not enough literate, qualified freshmen to fill the money-making seats. It is only the ridiculous propaganda fed to the parents and students that they must go to college that keeps these seats filled even though most people struggling for six years and spending a hundred thousand bucks for a useless liberal arts degree from what have become nothing more than diploma mills would have been better off going to trade school to learn an honest profession.

    Higher education, like most enterprises with access to a steady supply of free money, has become a racket.
     
  12. Vanguard23

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    Shouldn't the SAT's have kept those people out? I mean, certainly if they are so illiterate as to be incapable of writing a simple paper then they can't do too terribly well on the Verbal of the SAT. I had assumed that was the entire purpose of it.
     
  13. 8744

    8744 Guest

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    Many universities, especially state universities, have no real barriers to admission. My Alma Mater, Louisiana Tech requires a pulse and a few functioning brain cells and just a few miles down the road at Grambling State the big scandal a few years back was their practice of trolling the 'hoods in LA and Chicago for anybody who could produce a GED and even this was waived if the student could qualify for that sweet, sweet federal money.

    Like I said, there are a few schools with high admission standards but even they are diploma mills. They just happen to have a good brand and can attract smarter students. I can't put a percentage on it but college is wasted on most people who graduate with nothing but debt and a worthless degree in an easy course of study that didn't really educate them. Some of the most ignorant people you will meet are listless college graduates.

    I repeat. Higher education is a scam for the most part. This does not apply to most people on SDN who have a purpose in life and are actually very intelligent but you guys have been hanging out with too many dedicated pre-meds if you think that everybody at your institution is getting a meaningful education.
     
  14. Bacchus

    Administrator Moderator Physician

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    The CCRAA is the reason my PHEAA grant was decreased this year. AES is getting less money but dispersing grants to everyone, still, decreasing the overall amount. Or, so the Dir. of FinAid says.
     

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