Student Loan Interest Rate Changes: How They Affect You

Student Loan Interest Rate Changes: How They Affect You -

student loan interest rates are doubling

SHOULD CRANIAL it panic yet !? Or is it just fear of the month?

There is a bit of both, actually.

This is how the student loan interest rate changes can affect you.

If you make a student loan

the new, the loan rate student applies to all Stafford loans made 1 July 2013, for 2013-2014. school year

The new student loan interest rate is 6.8% - twice the previous rate of 3.4%

About 7 million people take these loans each year ( Tweet this.! ).

We'll see if this number changes with higher interest rates.

Even if you intend to apply for a loan this year, however, you can never really pay 6.8% on your student loan.

such a sudden change is unpopular, and politicians on both sides of the aisle are eager to come to a better deal.

If they do, they are likely to make a retroactive rate lower than July 1.

If you already have a student loan or a student loan you repay

the higher rates will affect Stafford loans that are already in place.

Of course, the change does not affect you if you have other types of student loans.

the best

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Stafford loans are still not a bad deal, even if the new higher rates sticks. Where can you get a loan of 6.8% which is not secured by a house or car?

Stafford loan rates are fixed, and you do not have to make payments until graduation.

The current interest rate for Parent pLUS federal loans is higher than 7.9%.

The loan rate is increased Stafford borrowing to other means for tuition suddenly become more attractive, however.

A student or parent may be able to take a home equity loan, borrow a parent whose economies are languishing in a bank account that pays virtually nothing, or take money from savings .

When the student loan interest rates were low and relatively abundant employment to graduation, it was easy to become complacent to take on debt increasingly for education.

If something good comes of this increase in interest rates, however, may we remember to measure the costs and benefits of student loans more carefully - in the same way that we do with any other debt

reduce lending by planning, shopping for the best deal, and given the risks

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for some people, it may mean taking better advantage of the program College level examination (CLEP) tests, and go to community college for the first year or two.

others may take a year off college and save money for courses. Everyone should shop around for colleges that offer the best education at the best price.

Do not give up on your dreams. While you follow these dreams, however, you will not regret taking as few loans as you possibly can.

When you have selected a college, how much has tuition play in your decision?

photo credit: katiew via photopin cc

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