> > "Absent congressional action, the interest rates on federally subsidized > student loans will double to 6.8 percent on July 1. Both President Barack > Obama and former Gov. Mitt Romney have urged Congress to act before that > deadline, but no one seems willing to state the obvious: The problem is not > the interest rate but that the federal government subsidizes student loans > at all." > > http://bit.ly/L5993W > > Pop. >
Pop quiz: How much of the student loans are impacted by this change in interest rate? Answer: Only Stafford loans that are initiated for the 2012-2013 school year are impacted, previous loans are not impacted. The student loan rates are locked at the time of borrowing. Past loan payment amounts aren't going to be impacted. Furthermore, this does not reflect a "doubling or tripling" of payments. If you look at the amortization schedules $5000 at 3.8% interest over 10 years ( http://www.amortization-calc.com/#loan-5000-10-3.8-6-2012-2) has a payment of $50.15 $5000 at 6.8% interest over 10 years ( http://www.amortization-calc.com/#loan-5000-10-6.8-6-2012-2) has a payment of $57.54 http://www.nytimes.com/2012/05/10/opinion/much-ado-about-students-loans.html?_r=1 has a lot of information about this issue, including the fact that as recently as 2007, student loan rates were at 6.7%. While I agree that there's a severe problem with the higher education model in this country, I don't think the issue is as much around the interest rate as it is around the structure and concepts associated with the way colleges work, spend and charge students for their products & services. That, however, is a subject for a different conversation. Until Later! C. Hatton Humphrey http://www.eastcoastconservative.com No trees were killed in the sending of this message, but a large number of electrons were terribly inconvenienced. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:351922 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
