Student Loan Interest Rates Dropping to 3.4%?
The US House of Representatives is trying to make good on some of their campaign promises. They voted today (356-71) to halve need-based student loan interest rates to 3.4% over the next 5 years.
The bill now moves on to the Senate where it’s going to face a much tougher time than it did in the House.
While some think colleges will simply raise tuition to capture that additional money and aid students are eligible for, I’m not positive it makes much of a difference. According to FinAid.org, college tuition averages an 8% increase each year. That’s pretty darned significant and seems to be independent of inflation or student loan interest rates.
Supposedly, this is just a piece of what’s in store for our student-aid system planned by Democrats. We shall see, I guess.
In the meantime, I’ll take this as a good thing. My step daughter will be starting college in 3 1/2 years and every little bit helps.
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January 19th, 2007 at 4:18 am
Hello Liz, good site with all kind of financial issues, hope this bill is going to pass at Senate.
In our life, devoid of the education we cannot further our goals and attain our full potential, since it is a necessity. However, getting an education similar to a college diploma or university degree can be a stressful time as these institutes influence on our finances.
Finance Guide 101