by William White | August 9, 2013 9:42 am
President Barack Obama is scheduled to sign a bill on Friday, that will save college students up to $1,500 of interest charges from this year’s student loans.
Interest rates on new Stafford loans doubled to 6.8% from 3.4% on July 1. The rates increased due to Congress being unable to come to a compromise on how to keep rates at the previous 3.4%. The new bill would drop those rates down to 3.9% for undergraduates, 5.4% for graduates and 6.4% for parents. The new loan rates would only last through the 2015 academic year. The rates on these loans can rise, but they are capped at 8.25% for undergraduates, 9.5 % for graduates and 10.5% for parents, reports the Associated Press.
“Even with this important bill signed into law, much work remains to ensure college stays within reach for middle-class families and those striving to get into the middle class,” Jay Carney, a White House spokesman, told the Associated Press.
The government is expected to make $184 billion in profits from students loans over the next decade.
The opinions contained in this column are solely those of the writer.
Want to share your own views on money and politics? Drop us a line at firstname.lastname@example.org and we might reprint your views in our InvestorPolitics blog! Please include your name, city and state of residence. All letters submitted to this address will be considered for publication.
Source URL: http://investorplace.com/investorpolitics/finally-good-news-on-the-student-loans-front/
Short URL: http://investorplace.com/?p=385467
Copyright ©2015 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.