Stafford interest rates still in limbo | 05.09.12

Posted in Financial Aid, News, Stafford Loan, Student Loans By Student Loan Network Staff

On Tuesday, the Senate voted on the future of Stafford Loan interest rates. The rates for subsidized loans are currently at 3.4%, but without action from the government, will jump to 6.8% come July 1, 2012. A majority of 60 votes were needed to pass the bill which would lower these rates, unfortunately, the votes were split 52/45.

The issue between parties is not lower interest rates — most are in agreement that they should be lowered — it’s the how that’s keeping the bill from passing. The bill, written by the Democrats, attempts to close a tax loophole for high-salary workers in order to fund one more year of low-interest loans. However, the Republicans rather see this money come from elsewhere.

With both parties locked in a stalemate, it’s unclear how this issue will be resolved, but to learn more about the bill, check out this recent article from The New York Times.


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7 Responses to “Stafford interest rates still in limbo”

  1. Karen says on June 26, 2012 at 12:38 pm:

    As “A” states above, but expanded: Existing debt rates much higher indeed! If a student’s family makes over the $80K limit (or so) THAT STUDENT gets stuck with an interest rate of 7.99% REALLY! What does OUR income have to do with what my son and daughter’s interest rates should be? Just because we make over the limit doesn’t mean my children can afford an interest rate TWICE as high as a lower income student upon graduation!! Where does this logic play in?
    Secondarily we live in the Bay Area; a VERY expensive place to live. Just because we take in more money doesn’t mean we SAVE IT: this extra money is due to our HIGH COST OF LIVING in this area. Why isn’t that fact taken into account when stipulating how much income one makes for student loans? EVERY CITY IN THE US IS TREATED THE SAME! We know the GSA has cost of living salaries figured out: why not include EDUCATION in this picture?

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  2. GREG HEITLAND says on June 16, 2012 at 11:50 pm:

    THE AMERICAN ECONOMY NEEDS HIGHLY EDUCATED GRADUATES TO COMPETE IN THE WORLD MARKET PLACE AND THESE IDIOTS ARE KILLING THE FUNDING? I SAY CLEAN HOUSE NEXT ELECTION DAY!

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  3. A says on June 2, 2012 at 5:35 am:

    You think that’s bad.. how about the rest of us with existing debt at rates much higher than what’s being discussed above. Nobody gives a shit about that.

    Reply To This Comment
  4. Student Loan Killer says on May 17, 2012 at 8:28 pm:

    It’s kind of disappointing to see something like student loans become just another piece of political garbage. The debate has nothing to do with the actual students, but with democrat and republican idealism.

    Unfortunately, I think those of us who have to actually live with this debt are on our own.

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    • leslie duncan says on June 12, 2012 at 7:59 pm:

      It’s the House that is causing grid lock and if this keeps up the rate will go up. When the house was ask to give and cut its 1.23 billion dollar personal budget they said no!! Do the math 1.23 divede by 38 Representatives?? If they block this we students will be in droves, they will not be reelected.

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    • leslie duncan says on June 12, 2012 at 8:00 pm:

      For all July 1st is the dealine for action from Govt. write your Representatives call e-mail. Do something

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  5. Shelby says on May 10, 2012 at 10:18 am:

    I’m working with DW-TV in Washington D.C. We are looking for students in the DC area who have a lot of student debt and who are struggling to find a job! If this sounds like you and you wouldn’t mind doing an on camera interview, let me know!

    Reply To This Comment

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