Student Loan Rates to Double Monday

[Cebu_4_2]

They will leave no stone unturned in the crippling of society:

Student Loan Rates to Double Monday By EMILY DERUY
June 28, 2013



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U.S. Sen. Jack Reed, (D-RI) (2nd-L) talks about student loans while flanked by (L-R) Sen. Kay Hagan (D-NC), Sen. Debbie Stabenow (D-MI), Sen. Elizabeth Warren (D-MA), during a news conference on Capitol Hill, June 27, 2013 in Washington, DC. The Senators spoke about solutions to keep student loans from doubling on July 1st. (Mark Wilson/Getty Images)




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The interest rate on new subsidized Stafford loans is almost certainly going to double on Monday.


Congress starts a weeklong recess today, and although lawmakers on both sides of the aisle wanted to avoid the rate hike, they failed to reach a compromise in time.


Rates will double from 3.4 percent to 6.8 percent. Subsidized Stafford loans are the only type of loan impacted, and the increase will apply to new loans, not existing ones. That means that if you're going to be a junior in college, rates on any subsidized Stafford loans you took out during your freshman and sophomore years won't change.


The average subsidized loan amount is about $3,400 per year. A Joint Economic Committee brief (http://univisionnews.tumblr.com/post/53776116307/student-loan-interest-rates-set-to-double-next-week) from Sen. Amy Klobuchar (D-Minn.) says that at the new interest rate, students will pay an average of about $1,250 more in interest over the 10-year life of an average loan.


Don't take those numbers as a given, though. Not all loans are for the same amount, and a 10-year repayment plan is just the shortest of several options for borrowers. The less time it takes you to pay off a loan, the less interest you will have to pay.


This might all sound dire, but here's some potentially good news: If Congress reaches an agreement in the future, they can make it retroactive, meaning the increase could be reversible. Whether lawmakers can work together to find a solution both sides are willing to live with remains to be seen, however.


The Republican-controlled House passed a plan earlier that President Obama threatened to veto (http://abcnews.go.com/ABC_Univision/News/congress-fighting-student-loans/story?id=19402320#.Uc2su0JetWc) because it didn't lock in interest rates over the life of each loan. He's proposed closing tax loopholes to offset the cost of keeping interest rates the same, but Speaker John Boehner (R-Ohio) opposes that idea. He blasted Senate Democrats in a Friday release for failing to compromise.


"[R]ather than take up a bipartisan solution supported by President Obama and House Republicans, Senate Democrats are going to go ahead and let student loan interest rates double on Monday," Boehner stated. "Democrats went from crowing about a 'political boon' to saying 'let's put this off for a year.'"


The White House and Democrats countered that the plan would hurt the most vulnerable students. At this point, they'd like to pass a one-year extension of the 3.4 percent rate and reexamine the issue next year when they are set to consider the Higher Education Act, which governs federal student aid programs.


If the extension sounds familiar, it's because they passed a similar short-term measure last year, too. Sen. Debbie Stabenow (D-Mich.) told the Washington Post (http://www.washingtonpost.com/local/education/student-loan-rate-likely-to-double-on-monday-but-lawmakers-hope-to-reverse-hike/2013/06/27/0aef31dc-df61-11e2-b2d4-ea6d8f477a01_story.html) that the Senate will likely vote July 10 on whether to consider a bill that would keep the rate at 3.4 percent for a year, retroactive to Monday's increase.


Whether Republicans will be receptive to such a bill is another matter. They have so far opposed closing tax loopholes and spent most of their time blaming Democrats for failing to take up the House bill they passed earlier.


While Congress can still take action after the July 1 increase, they're going to have to reach a compromise to halt the rate hike. Students and those supporting them won't see any improvements until that happens.

[Serpo]

They want people in debt when it crashes so they become debt slaves working for the BEAST.

[gunDriller]

US Senators to the rescue !

they don't have the courage to stand up to some (literally) cock-sucking Jews (the ethnic group with by far the most experience at usury), but they're going to protect students from high interest rates ?!

the only way they can protect students from high interest rates is by sticking them with higher interest rates.

of course, universities raise their rates as more loans become available, sort of like with housing.

i suggest ETH Zurich, same university Einstein went to. in Switzerland.

http://www.rektorat.ethz.ch/students/finance/fees/index_EN

580 Swiss Francs per semester. living costs are about $1500 per month.

[Hypertiger]

How much does it cost to produce a line signer by the time they are willing and able to sign on the dotted line and take over suppling the demand of the top for the yield of power they demand in order to supply the demand of the bottom?

All the power the top has is supplied by the bottom. and when all below demand more power than all below can supply. The top can not supply the bottom with the power the bottom thinks the top has.

Yield starvation.

The power has run out.

The top just increase the demands by whipping the bottom to death if they refuse to supply the demand.

A whip across your back or an increase in prices is basically the same.

The beast is your body. Your mind can become aware of this.

Does your body supply you with existence or do you supply your body with existence?

Every cell in your body is in debt until you pay the debt with food.

Your cells all demand more deposits than withdrawals like fractional reserve banks.

Stop supplying more power into your cells then they output and they collapse and your body dies.

What if you chop down trees faster than they regrow to sustain your existence?

That is what taking more power than you give is.

What do University educated people supply to the farmers that sustained them for two decades or more while they were being produced?

Are the University people or net consumers of power in debt to the net producers of power or are the net producers of power in debt to the net consumers of power?

When the net producers of power can not supply the demand of the net consumers of power they die.

This has been how it's been long before people knew that something called debt even existed.

Does the top of the pyramid hold up the bottom or does the bottom hold up the top?

Is the bottom in debt to the top or the top in debt to the bottom?

All the money the rich have comes from all below that are made powerless or poor to sustain the powerful.

When a horse does not have a rider...Does it have to work as hard to pay the debt it owes to sustain it's continued existance?

Is the horse in debt to the rider or is the rider in debt to the horse?

[Twisted Titan]

I hope it quadruples.

Because that is the only way people are going to figure out most degrees are bullshit and only a handful needed higher education.

Most would be better learning a trade.

[MNeagle]

Maybe so TT, but a HR person told me "it's the last legal way to discriminate" (requiring that sheepskin) regardless of its value. So good luck in corporate America w/o it, sadly.

[gunDriller]

Maybe so TT, but a HR person told me "it's the last legal way to discriminate" (requiring that sheepskin) regardless of its value. So good luck in corporate America w/o it, sadly.

true, most of the time, but there may be isolated exceptions.

i had one co-worker at a defense contractor who worked as a mechanical designer, and was good at it, without the degree. he still got raises & promotions.

another former co-worker, a machinist, ended up being a key employee at Composite Optics, which ATK bought. (ATK also makes depleted uranium munitions, they're about the 6th largest military contractor.)

he was willing to work lots of over-time, and was good at learning all the various ovens and composite machining techniques. he was much more important to the operation than many of the PhD's they had there.

what the 2 guys had in common was, good hands-on skills.

of course, most of the time, what gets US gov. $ is "Powerpoint Engineering".


i had one mechanical engineering co-worker who didn't know the difference between convection & conduction. that's like an electrical engineer not knowing the difference between current and voltage. but he was a kiss-ass, and he got promotions and raises, too.

[Bonate]

Everyone knows that the best way to fix a crisis is to tax kids who have zero chance of getting a job after college. Whoever they have working out these genius solutions deserves a reward for being the dumbest person on the planet. Thanks for destroying the next generation of workers before they even get a chance to work.

[Sparky]

FYI, most student loans are already at 6.8%. Most loans aren't Stafford Loans.

Of course, the more money they loan, the more colleges raise tuition.

The whole student loan structure is a mess. Elizabeth Warren makes a valid point, that it seems wrong for the government to loan to banks at 0%, but charge students 6.8%. Plus, why aren't student loans handled like house loans? In other words, the college you go to and the degree you are pursuing should impact the amount you are loaned and the rate you pay, because it determines how much of a risk you are. Undergraduate philosophy majors can get Stafford Loans at 3.4%, but graduate school engineers and medical students do not qualify for these subsidized rates.

[BrewTech]

Maybe so TT, but a HR person told me "it's the last legal way to discriminate" (requiring that sheepskin) regardless of its value. So good luck in corporate America w/o it, sadly.

TT was referring to learning a useful trade. One of the benefits of learning a useful trade is NOT having to bend over and become a slave for "corporate america" in order to earn a living. "corporate america" (yes, I refuse to capitalize either of those words) likes the type of worker who worships authority and doesn't see a problem with becoming a slave through usury...hell it's even better if said slave doesn't even understand the concept of usury and equates debt with money automatically.

An old joke comes to mind:


A young man hired by a supermarket reported for his first day
of work. The manager greeted him with a warm handshake and a
smile, gave him a broom and said, "Your first job will be to
sweep out the store."
"But I'm a college graduate," the young man replied
indignantly.
"Oh, I'm sorry. I didn't know that," said the manager. "Here,
give me the broom - I'll show you how."

[MNeagle]

Perhaps, but even w/ a trade, you have the snare of unions...

[madfranks]

I love how all of these politicians think that interests rates are arbitrary, to play with and set as they pick and choose. They have no concept that interest rate-setting by the market is the ONLY way to ensure that the proper influx of new students will be admitted according to the demands of the real job market. We already have a glut of college grads who can't find work, why further perpetuate the distortion with even lower interest rates, in effect telling students that college is in high demand! Remember, the lower the price is, the more demand there will be for it.

[Hypertiger]

Maybe there is not enough oil and it's game over but no one knows yet....Like The revelations about the NSA. I started out as a programmer so I know that as soon as you connected to the Internet they know about you. But until the mainstream news tells you it's not a conspiracy theory. It is.

[gunDriller]

TT was referring to learning a useful trade. One of the benefits of learning a useful trade is NOT having to bend over and become a slave for "corporate america" in order to earn a living.

what comes to mind is a friend who just got back from a dredging trip. 5 hours of very hard work, he got about 1/4 ounce of gold and some old coins. now that is a useful trade.

he's actually a Vietnam vet, but for a guy who is 60, he's about as fit as if he were 40.

[madfranks]

what comes to mind is a friend who just got back from a dredging trip. 5 hours of very hard work, he got about 1/4 ounce of gold and some old coins. now that is a useful trade.

he's actually a Vietnam vet, but for a guy who is 60, he's about as fit as if he were 40.

1/4 oz of gold for 5 hours of dredging? He must have found a good spot. I know a couple guys who do that but never get more than a few grams for the same period of work.

[Cebu_4_2]

1/4 oz of gold for 5 hours of dredging? He must have found a good spot. I know a couple guys who do that but never get more than a few grams for the same period of work.

Might have been near ponces stream.

[Libertytree]

Years ago I had a student loan and ran into the collection arm of such, Collection on evil steroids is what it was. Those fuckers knew no bounds as they had the fed .gov backing them and they flexed their muscle with all their might. Even when I went in personally to pay it off in cash they were still bullying assholes, my gf had to drag me outta that office, I'm glad she was there! There was a long list of the shit they pulled right up to the very end.

[gunDriller]

1/4 oz of gold for 5 hours of dredging? He must have found a good spot. I know a couple guys who do that but never get more than a few grams for the same period of work.

he uses a metal detector to find 'streaks' of gold particles, and dredges there.

he said he could use a bigger dredger. if i had the money i'd buy him one.

his current dredger is about 2 1/2 inch diameter. from the sound of it, he only got about 1/4 the area he wanted to dredge, though he got the best part.

so with a bigger dredger, he might have gotten 3/4 ounces.

he said the dredger he got cost him $6K.