While the new quarter has started with a bang for the capital markets and those 1% who actually benefit from one after another record high courtesy of the Fed's "fairy dust", July 1 is an important date for another group of Americans: students. However, instead of more wealth, America's aspiring intelligentsia has something far less pleasant to look forward to, namely more debt, because today is when higher interest rates for education loans kick in.
Pundits and politicians alike have been arguing about whether or not Congress should prevent rates on subsidized federal student loans from doubling from 3.4 percent to 6.8 percent on July 1. But focusing solely on that rate
Sen. Elizabeth Warren (D-Mass.) wasted no time going to bat for college students last week, introducing a bill –– her first as Senator –– that would let students take out federal student loans at the same dirt cheap interest rates as big banks.
We have experienced lots of confusion from our customers around how their federal student loan interest rates are determined, and wanted to shed some light on the process to make you more informed about your options.