UPDATE: Stafford Loan Interest Rates | 06.06.12

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

Recently, the U.S. Senate rejected President Barack Obama’s plan to maintain the 3.4% interest rates on federal student loans. If both parties are unable to agree on terms by the July 1 deadline, the rate will jump to 6.8%.

Both parties agree that the rates should remain at 3.4%, but paying for an extension of this proposal would cost $6 billion. So the question is, where will this money come from?

The Democrats are proposing the money come from shutting down a Medicare loophole that business partners can currently use to save money, while the Republicans suggest that eliminating a preventative health fund could provide the funding.

Background

In 2007, when interest rates on subsidized Stafford loans were 6.8%, the Senate approved a law that temporarily reduced the rates to 3.4% for low and middle-income students. While the rates are expected to return to 6.8% on July 1, President Obama is urging legislators to keep those rates at a more affordable level for students and their families.

Learn more about Stafford loans so you can prepare for the upcoming semester.


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6 Responses to “UPDATE: Stafford Loan Interest Rates”

  1. Darlene says on June 29, 2012 at 6:16 pm:

    It will take a supernatural power, namely Jesus Christ, to restore justice to society and this is because it is way beyond man’s ability to fix this mess. I don’t want to sound pessimistic but the reality is that our leader’s have lead this nation into financial ruin without the people’s consent. This is lawlessness.

    Reply To This Comment
  2. Melissa says on June 26, 2012 at 5:06 pm:

    The interest rate hike should not happen. Our economy is still coming up, and every little bit helps when it concerns betterment.

    Reply To This Comment
  3. donna says on June 18, 2012 at 9:37 pm:

    Don’t cry to me, my interest rate is 9% because Im in the 1% and have good credit.

    Reply To This Comment
    • Christine says on June 26, 2012 at 12:59 pm:

      Just out of curiosity, if you belong to the one percent, why do you accept loans?

      Reply To This Comment
  4. leslie duncan says on June 12, 2012 at 7:55 pm:

    It is the republicans and both the House and Senate, if they don’t stop embarassing this country by causing govt. grid lock, The young will know, It will be all over facebook twitter, we will vote, we will vote them gone gone,ALL 38, who have 1.23 Billion $$$ personal BUDGET and won’t give. I personally will publish any memeber of govt who blocks this adress and all, Tuition is rising , my peers owe 50, 000 debt and they want to bail out people who bought $200,000 house that they could barely afford a $100,000 house, don[‘t bail them out, half are house flippers, there your 6 million also, The House of representatives this week said yes to a budget cut of which tax payers will pick up the tab but no to their personal, travel abd expense budget. Where are their priorities, not my education. Qoute Houston Chronicle HOUSE OF REPRESENTATIVES SAVE OWN BUDGET
    After seeking to impose substantial spending cuts on a wide range of non-defense programs this year, the Republican-controlled U.S. House of Representatives on Friday voted to keep its own administrative budget unchanged.

    House lawmakers then left Washington for a week-long recess.

    The House has voted to make deep cuts to a number of social programs, such as food stamps and the Medicaid health care program for the poor, in order to protect defense spending from automatic spending cuts. The House has approved, on average, cuts of around 5 percent to federal agency budgets and other discretionary spending from last year.

    Speaker John Boehner last week defended the House’s plans to keep its own budget unchanged.

    THEY WILL CUT THE POOR BUT KEEP A THEIR BUDGET IS 1.23 BILLION and there are only 38 people thats a BIG PERSONAL BUDGET! THIS IS INSANE!!!

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  5. emilymore says on June 11, 2012 at 11:33 am:

    good new thanks

    Reply To This Comment

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