Obama urges Congress to lower student loan interest rates | 04.23.12

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

You may have noticed in the news recently, student loan interest rates have been getting a lot of attention. On July 1, 2012, the interest rates of Subsidized Stafford loans are set to climb back up to 6.8%. Here’s why:

In 2007, congress passed a bill, lowering these interest rates for the next few years. Unfortunately, this bill will expire after June 31, and rates will go from 3.4% to 6.8% once again. Congress is now looking for ways to keep this interest rate hike from happening, though nothing solid has happened as of yet.

Last week, Obama spoke out about this issue and what he wants to see happen. Check out the video below to learn more.

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5 Responses to “Obama urges Congress to lower student loan interest rates”

  1. Clark says on September 7, 2012 at 2:51 pm:

    I recently finished grad school and was enrolled in my undergrad when the 3.45% rate was to begin. I am paying the 6.8% on all my student loans, both under and grad school. The Obama rate is a joke, simply another left wing liberal lie. I was enrolled when it began but cannot have my loans serviced at the reduced rate. Again, the honest tax paying middle class people are getting robbed. All we can do as taxpayers is vote the scum bags out and continue to pay our bills as usual.

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  2. Joanne Price says on June 6, 2012 at 5:05 pm:

    I am so sorry for those of us that went to college in the 80′s and 90′s. The interest rates on loans were what our government put in place then. I do not understand the whinning about Obama lowering the interest rates. “Educate! Educate! Educate!” Well tuitions are much higher than they were in the 80′s and 90′s. How are our children and granchildren going to educate themselves. Not all of us are making 6 digits and can afford to pay for our children to go through college. The only suggestion I would make to the folks who call the shots is do away with the extra borrowing for additional education expenses. That would cut the billions of dollars that are in default.

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  3. Janis RN says on April 25, 2012 at 8:21 pm:

    My son and daughter were in college between 2006-2010. They have Stafford loans at 6.8%. Why weren’t they given the 3.45% interest rate that Obama is talking about? And by the way, the Stafford loan covered only about 10% of the cost of college. My husband and I had to take out Parent Plus loans at as much as 8.5% interest. Obama a little out of touch here regarding the real cost of a college education for a family?

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    • Student Loan Guru says on April 26, 2012 at 9:44 am:

      There are two types of Stafford loans, unsubsidized and subsidized. Obama is specifically referring to the subsidized stafford loans, which were lowered due to a 2007 bill that was passed. Unsub. Stafford loans have remained at the 6.8% interest rate during this time which is probably why your children have loans at this rate. All students who file the FAFSA are typically eligible for the unsubsidized loans, while the subsidized are determined based on need.

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    • Patti says on May 1, 2012 at 12:16 pm:

      I totally agree!!! My husband and I have 3 sons: 2 have graduated and one is just about to complete his Sophomore year. All from State Colleges. Everyone keeps talking about Student Loans. First off – my boys student loans are and have been around 6.8% — NOT 3.45%!!! Then he(they) fail to mention that a student could NEVER go to college on JUST their STUDENT LOANS! The rest has to be financed! AND by WHO – yest the PARENTS!!!! Which their BEST deal is around 7.65% or MORE!! Right now we are in about $210,000.00 debt and that doesn’t cover my boys’ student loans! We would like to find another way to LOWER our interest rates WITHOUT getting a Home Equity or any other loan that is ‘secured”. The government has a real money maker here and there are little or no ways out other than turning your home (that youb worked all your life for) over to them. And also, who do you think is paying for all these scholarships, etc… YES – US the taxpaying -tuition paying PARENTS!

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