Neither Party has Cash for Student Loan Rate Fix
"Incoming college freshmen could end up paying $5,000 more for the same student loans their older siblings have if Congress doesn't stop interest rates from doubling," The Associated Press reports. "Sound familiar? The same warnings came last year. But now the presidential election is over and mandatory budget cuts are taking place, making a deal to avert a doubling of interest rates much more elusive before a July 1 deadline. 'What is definitely clear, this time around, there doesn't seem to be as much outcry,' said Justin Draeger, president of the National Association of Student Financial Aid Administrators. 'We're advising our members to tell students that the interest rates are going to double on new student loans, to 6.8 percent.' That rate hike only hits students taking out new subsidized loans. Students with outstanding subsidized loans are not expected to see their loan rates increase unless they take out a new subsidized Stafford loan. Students' non-subsidized loans are not expected to change, nor are loans taken from commercial lenders."
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