What Is The Student Loan World Coming To?

Instead of double mint gum, we are tasting doubling interest rates.

1627On July 1st, the new interest rate increases on subsidized Federal Student Loans went into effect. The rates doubled the subsidized Strafford Loans rate to 6.8%. This doubled rate affects all parents and students getting financial aid after July 1st.

This new interest rate increase has been debated by congress for days. On July 7, 2013 Congress made headway to make the rates go back down. A compromise was made by Senator Angus King and Senator Joe Manchin III. In this compromise dropped the percentages charged on loans to 3.61for undergraduates and 5.21 for graduates. The new rates would see change based on the market and each year, would be fixed for the length of the loan.

Congress is looking to find an area of agreement between the Republicans and Democrats.

Being knowledgeable about the current issues with student loans not only prepares you for later, but is also one important Financial Strategy For Life.

The link is provided as a convenience and for informational purposes only. We assume no liability for any inaccuracies, errors or omissions in or from any data or other information provided on the pages, or for any actions taken in reliance on any such data or information.


About Sara Seasholtz

Sara Seasholtz, CFP®, was voted one of "50 Most Influential Women in Charlotte" by The Mecklenburg Times in 2011, and has assisted her clients with their financial planning needs for over 40 years. Have a financial question? ASK SARA!


Get free updates from Financial Strategies for Life™ directly in your email inbox. Your information will be kept completely private.

, , , ,

Comments are closed.

This communication is strictly intended for individuals residing in the states of CO, CT, FL, MO, NC, NY, SC, TX, VA, WI . No offers may be made or accepted from any resident outside the specific state(s) referenced.

A Broker/dealer, investment adviser, BD agent, or IA rep may only transact business in a state if first registered, or is excluded or exempt from state broker/dealer, investment adviser, BD agent, or IA registration requirements as appropriate. Follow-up, individualized responses to persons in a state by such a firm or individual that involve either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without first complying with appropriate registration requirements, or an applicable exemption or exclusion. For information concerning the licensing status or disciplinary history of a broker/dealer, investment adviser, BD agent, or IA rep, a consumer should contact his or her state securities law administrator.

Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client's evaluation.