Deeper In Debt
March 6th, 2006 by jhampton
Students have always been able to borrow money for student loans. Because of new federal laws college students can borrow more money than ever before.
The Deficit Reduction Act, passed by Congress and signed by President Bush in February, is a mixed bag for college students. But many educational analysts agree that the news for needy students is mostly bad.
The bottom line: They can borrow more money through federally regulated programs. But they’re going to pay more for it.
Rates on Stafford loans are going from a variable rate that hovered around 5.3 percent, or 4.7 percent while students were in school, to a fixed 6.8 percent.
Most parents seeking to help their kids through school by borrowing from the federally regulated PLUS program will see rates jump from 6.1 percent to 8.5 percent.
The bottom line: They can borrow more money through federally regulated programs. But they’re going to pay more for it.
Rates on Stafford loans are going from a variable rate that hovered around 5.3 percent, or 4.7 percent while students were in school, to a fixed 6.8 percent.
Most parents seeking to help their kids through school by borrowing from the federally regulated PLUS program will see rates jump from 6.1 percent to 8.5 percent.
There are pros and cons with this law. It will now allow graduate students to apply for PLUS loans which were previously only available for parents.
Posted on Monday, March 6th, 2006 at 8:52 pm In Debt Elimination