Student Loan Rates Double After Congressional Inaction

[marmar]

WASHINGTON -- Interest rates on some new federally backed loans for college students are now double what they were last week.

Subsidized Stafford loan interest rates went to 6.8 percent on Monday because Congress didn't strike a deal to keep them low. That translates to an extra $2,600 per student in costs. It affects roughly a quarter of all federal borrowers.

The effects aren't immediate, though. That's because most students sign their loan documents when they return to campus in the fall. ...................(more)

The complete piece is at: http://www.huffingtonpost.com/2013/07/01/student-loan-double_n_3529166.html?ncid=txtlnkushpmg00000037

[global1]

1. Seems To Me If The Repugs Want To Piss Off A Generation Of Young Voters....

this is sure the way to do it.

Not only will they loose the immigration voters - but now the young and up and coming voters. Seems to me they are hastening their path to extinction.

[abelenkpe]

2. Gotta bail out the banks

with an influx of debt slaves. Love how our best students are rewarded for their efforts with debt.

[xchrom]

3. Du rec. Nt

[dixiegrrrrl]

4. Student loan debt is the new bubble.

The banks have already 'securitized" the debt, selling it as bonds, like they did with the mortgages.

Notice that the banks got laws passed that make it impossible to discharge student debt in bankruptcy,
PLUS that the interest rate would increase.
That translates into almost guarenteed payment on the bonds they now sell to investors.
They are selling car loan debt, also. Car loans used to be for 5 years max., now they are for years longer.

Remember, to the banks, debt is worth money to them.

[im1013]

11. That is exactly what's going on.

Sickening.

[Orrex]

5. It's mistake to call this "inaction"

"Inaction" implies that the spike in interest rates is due to Congress' failure to act.

In fact, it's due to the GOP's diligent effort to quash any Democratic attempt to rein in these usurious, burdensome & inescapable loans that are strangling the middle class.

The GOP is guilty of many wrongs, but inaction is not one of them in this case. Quite the opposite.

[msongs]

6. republicans hand dems a major gift, but will dems use it? or are they too complicit nt

[progressoid]

7. Angry rec.

[cantbeserious]

8. The Oligarchs Demand Their Tribute From All

eom

[louis-t]

9. Shameful.

That is all.

[kelliekat44]

10. Well...proceed....nt