Tag: interest rates

American higher education’s “dirty little secret”

Posted on September 4th, 2013

"The dirty secret of American higher education is that student-loan interest rates are almost irrelevant. It’s not the cost of the loan that’s the problem, it’s the principal — the appallingly high tuition costs that have been soaring at two to three times the rate of inflation, an irrational upward trajectory eerily reminiscent of skyrocketing housing prices in the years before 2008." -- Matt Taibbi

President Obama’s recent signing of the bill to keep student loan interest rates low is a move in the right direction toward helping students afford college. But as we’ve discussed, it’s not enough. In the video below from Democracy Now, Rolling Stone editor Matt Taibbi discusses how the high price of U.S. college tuition is the real […]

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6 things you should know about the new student loan rates

Posted on August 14th, 2013

On August 9, President Obama signed into law the student loan deal that lowers rates on new federal student loans. There’s still more work to be done to make college more accessible and affordable for students, but it’s a start.

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House passes student loan interest rate fix

Posted on August 5th, 2013

"Although this legislation is far from perfect, it a step that must be taken in order to provide financial relief to American students and their families." -- Rep. Tim Bishop (D-NY)

On Wednesday, July 31, 2013, the U.S. House of Representatives gave final passage to a compromised bill for student loan interest rates and the president is expected to sign. For new student loans made since July 1, 2013, the new rates for this year will be: 3.86 percent for undergraduate Stafford subsidized and unsubsidized loans […]

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Senators (finally) reach deal on student loan rates

Posted on July 18th, 2013

The good news? The government has finally come to an agreement on student loan interest rates and agreed to lower rates through the 2015 academic year.

The bad news?After 2015, rates would likely climb higher than they were this past spring.

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“We need to have a different concept of higher education”

Posted on July 17th, 2013

"How can you start a business, how can you build a family, how can you buy a home, how can you be a consumer, which is vital to economic progress and job creation, if you're paying off a $90,000 loan?" -- Sen. Richard Blumenthal (D-Conn.)

As student loan debt tops $1 trillion dollars, the outcry to reduce student loan interest rates and help those already in debt grows stronger. In this video from Politico, Sen. Richard Blumenthal (D-Conn.) offers his take on the high cost of college, society’s view of higher education, and the impact of student debt on the economy. […]

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Millennials: a generation in debt

Posted on July 12th, 2013

After adjusting for inflation, students are borrowing twice the amount they borrowed a year ago. Congress’ recent neglect to keep student loan interest rates from doubling to 6.8% could cost students as much as $5,000 more over the next 10 years.

Scholarslip, an excellent documentary about the student loan crisis, explores the real stories of young people facing their student debt.

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Student loan vote fails Senate again, sticking borrowers with higher rates

Posted on July 10th, 2013

Today, the Senate failed once again to implement a one-year, retroactive fix that would keep rates at 3.4 percent on federal subsidized Stafford loans made from July 1, 2013, to June 30, 2014. Lawmakers have been debating various proposals to lower student rates but have neglected to come to an agreement.

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Student loan interest rates aren’t the problem

Posted on July 8th, 2013

"Manifestly Congress has failed our students. But the real failure here is the pretense that federal loans are making college more affordable." -- NY Post

This commentary from the NY Post sums up the real way Congress has failed students perfectly. The problem is not just that Congress has hurt students by failing to keep student loan interest rates from doubling to 6.8%. It’s that they have done nothing to prevent college costs from skyrocketing. The real problem: college affordability […]

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Student loan compromise by Democrats would raise borrowing costs

Posted on June 24th, 2013

"The July 1st deadline shouldn't be used as leverage to enact a long-term deal that is bad for future students. Keeping the rate at 6.8 percent may strangely turn out to be a better overall outcome than many of the current proposals." -- Chip Unruh, spokesman for Sen. Jack Reed (D-R.I.)

Government representatives have recently made several proposals to prevent the interest rates on federal subsidized Stafford student loans from doubling to 6.8% on July 1. But it turns out that letting the rate double might be a better alternative than some of the latest proposals in Congress, according to a recent Huffington Post article. Student […]

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Don’t major in debt

Posted on June 23rd, 2013

With the cost of college skyrocketing over the past 30 years, taking out student loans has become a necessary evil for many students to attend college. The problem is, many borrowers don’t fully understand the terms of the loans they are taking out or what repayment is really like–until graduation hits and they’re faced with an expensive student loan bill every month.

In this insightful video from The Field, real college students share their thoughts about their student debt, why they took out student loans, and how they plan on repaying their debt in the future.

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