Without Congressional Action, Federal Student Loan Rates Set to Double July 1st
President Obama and House Republicans are seeking a more permanent fix to the current federal student loan rate problem. Without Congressional action, subsidized Stafford federal student loan rates will double to 6.8% on July 1. Last year, Congress extended the deadline that would have mandated federal interest rates to rise from 3.4% to 6.8% for undergraduates, effectively punting the issue down the road one more year.
Of the four proposed solutions currently being considered, three are market-based with variable interest rates, and one, offered by Senator Elizabeth Warren, sets student loan rates at 0.75% - the rate banks receive from the federal government.
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Student Loan Debt Threatens Home Ownership, Entrepreneurship, and Retirement Savings
Among Chopra's findings:
- Student loan borrowers are less likely to qualify for mortgages, thereby delaying home ownership
- Student debt diminishes entrepreneurship and small-business growth by reducing access to capital
- Student debt is a risk to retirement security.
Read the OpEd on Politico.com here.
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What Every Class of 2013 Graduate Needs to Know
Most graduating student loan borrowers have a grace period before their first loan payment is due, usually about six months.
Now is the time to inventory your loans so that you can make informed decisions about repayment:
- How will you choose a repayment plan?
- What are the tax implications of each plan?
- Who will help you figure it all out?
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