College tuition, books, housing--you name it college is expensive and those costs keep going up. Now the cost of borrowing to pay for your higher education is about to go up too.
About 8 million people borrowed $60 million this year in education loans issued or guaranteed by the federal government and students, and their parents took comfort in the half-decade of ultra-cheap college loans. Get ready to say good bye, unless you choose to act quickly.
According to this WashingtonPost.com article a combination of rising interest rates and legislative changes to the student loan program will alter the student loan landscape on July 1. Rates on existing Stafford loans -- the bedrock government-guaranteed student loans that 44 percent of full-time undergraduates rely on to pay tuition bills -- change annually and are pegged to 91-day Treasury bills. For the second year in a row, T-bill rates have jumped nearly two percentage points, taking Stafford loan rates along with them. Last June, rates on Stafford loans in repayment stood at 3.37 percent. On July 1, they will top 7 percent.
Read the full article to learn more about how to handle college costs and debts.
Know More about preparing for college costs at GrowYourFunds.com.
Marta, this is a great service to those with college loans outstanding. Thanks for the trackback to my blog at http://www.growyourfunds.com. My readers will appreciate the reminder. Feel free to stop in at any time. I look forward to reading more of your posts.
Larry
Posted by: Larry Stay | June 23, 2006 11:36 PM | Permalink to Comment