Wednesday, June 27, 2012

Partisan Battle Continued: Interest Rates on Student Loan To Increase?

Most of you have probably already heard, but in case you haven't, student loan interest rates on Stafford loans are set to double on Saturday. They are currently a 3.4%. If they double, this change will impact over 7 million students currently in school.

Here's an MSNBC video about the situation.

Given the dire economic situation in this country, and the millions and millions of borrowers who are struggling or unable to pay off their debt, this "battle" is only political posturing. While that is common in D.C., they all look even more tone deaf than ever. It's pitiful.

10 comments:

Studentdebtforlife said...

Why Saturday?

Is it more like by the end of the workweek at the end of Friday at 12PM?

Nando said...

The banks own the country. Senator Dick Durbin said that years ago.

Anonymous said...

Cryn,

You seem to have a better pulse on Washington than the rest of us in regard to student loans. Do you believe that Congress will, at some point, act to end the suffering of the victims of "higher education payday loan sharks?" I mean, at some point, something has to give, right? This will literally halt our economy if it hasn't already...

DJ said...

Good news: Congress has passed the bill extending low interest rates for subsidized student loans.

Bad news: The bill as passed also contains the debt slavery, er I mean passport revocation, provision for unpaid income taxes that I mentioned in an earlier post.

Jonathan Hall said...

I want to set an example here also to show students the possibilities online to help pay for student loans

YMEMJ.blogspot.com

Anonymous said...

I also heard that while the interest rate has been extended for another year, Congress has removed the 6 month grace period... and of course, graduate students have to pay interest while still in school. What a sham. Sadly, this is no real victory for us.

Anonymous said...

D.J.

Are we sure that we cannot get passports now? How is this constitutional? We are now prisoners in our own country - keep the slaves on the plantation, right?

I'll never be able to afford a cruise, but I was just thinking... I can't even go on a cruise now because of my student loan debt. This is infuriating.

I am very disgusted by my country.

DJ said...

2:29, the restrictions on passports apply only to unpaid income tax, not unpaid student loans (for now).

Shine said...

That's a very bad news :(

Giana Forzareli said...

This is such a terrible crisis we are in. I have been trying to find ways to cripple my student loan debt for a while now. I am waiting for these politicians to start making proactive efforts that address solutions for this crisis. I finally moved away from home and started looking at South Dakota politicians that share my opinions. I found that sioux falls may make loans and debt more of a priority. I hope to see some more progress.