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