01.26.07 | House Approves Cut in Stafford Loan Rate
The US House of Representatives voted last Wednesday to cut the interest rate on future federal student loans. The bill will gradually reduce interest rates for only federally subsidized loans. If this bill is passed by both the House and the Senate, interest rates on the subsidized Stafford Loan will be cut beginning this July. These rate cuts will be phased in over the course of five years. So, this year, the interest rate will be cut from 6.8 percent to 6.12 percent. This cut will help lower the monthly cost of repaying student loans for millions of low-income students.
The bill currently awaits Senate and presidential approval.
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Too bad they continue to screw over anyone who borrowed money between 2006 and 2008. Even though interest rates during that time were nowhere near 6.8%, they continue to charge us that rate with no relief in sight. I guess students are easy to take advantage of.
January 22nd, 2008 | #
What Kenny said. My first quarterly semester was 4.2% and the following 7 are now 6.8. I would imagine that 3/4 of my classmates have 0% and 0 debt because they were low-income and the government footed their student loans at the expense of myself and other taxpayers. Ironic isn’t it.
October 21st, 2008 | #