The Student Loan Interest Rate Lottery
Borrowing Costs Are Headed Up
On July 24, the Senate passed the Bipartisan Student Loan Certainty Act, which is expected to get House approval. The legislation will amend the Higher Education Act to change the interest rates on all new subsidized, unsubsidized, GradPLUS, and Parent PLUS loans (and would apply retroactively to loans made on or after July 1, 2013).
The new interest rates will be a fixed rate set for the academic year during which the loan is made based on the 10-year Treasury rate. While current students would benefit from today's historically low rates, those rates will rise steadily over time, thereby causing students will borrow at higher interest rates.
See Heather's entire analysis |
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Build a Bad*ss Credit Score
A Silver Lining Playbook for Student Loan Borrowers
I may not have two dimes to rub together, but my credit score is through the roof! How'd I do it? By borrowing young, borrowing a lot, and making zillions of teeny, tiny payments - on time, every time.
Of course, a better plan is to minimize your borrowing and pay back debt quickly to avoid higher interest fees and lower your costs over time - if you can afford that.
Read more about how your student loans affect your credit score.
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Repay Student Debt:
Consumer Financial Protection Bureau Provides Useful Tool for Borrowers
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