Obama’s Proposed Budget Seeks to Prevent Doubling of Student Loan Interest Rate
The Obama Administration's budget request to Congress for fiscal year 2013 includes several proposals related to student loans. In the proposed budget, the President recommends extending the 3.4% interest rate on undergraduate Subsidized Stafford student loans for one year, preventing the interest rate from doubling to 6.8 % on July 1. The budget further proposes eliminating the interest subsidy for borrowers who remain in-school beyond 150 percent of their program length. The administration estimates that this would save $1.8…
