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July 2, 2013

Doubled Rates - What Does It Mean For You.

Beginning Monday morning, interest rates for new federal subsidized Stafford loans doubled from 3.4% to 6.8%.  Unable to reach a bipartisan solution before their Independence Day holiday recess, Congress must now decide whether it has the political will to produce an elusive bipartisan compromise bill to return interest rates to 3.4% (or some rate lower than the present 6.8% and apply it retroactively to July 1st) or let the change stand and cost a "typical borrower" an additional $3,000 over the course of a standard 10-year repayment plan.…

July 1, 2013

The Clock Ticks On

Time's up!. As expected, interest rates for new subsidized federal student loans rose this morning from 3.4 percent to 6.8 percent as Congress adjourned for its Independence Day break without reaching a compromise.  Despite missing the deadline, Congress still has time to fix the issue before students begin classes in the fall and apply the fix retroactively.  However, if Congress fails to find a solution prior to its August recess, significant problems for students could be the result.  So how did we get here and which proposed…

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