Please go here for a detailed look at College Loans and Grants.
And go here to read how Congress is reducing its financial support for college students at the very time that tuition is rising through the roof.
Prepare yourself: on July 1, as many as 8 million college students will see their interest rates on federally subsidized student loans double, from
3.4% to 6.8%. According to the U.S. Public Interest Research Group, that increase amounts to the average Stafford loan borrower’s paying $2,800 more over a standard 10-year repayment term for loans made after June 30. It’s worse for those students who take out the most money. Those who borrow the maximum $23,000 in subsidized student loans will see their debt load upped by $5,000 over a 10-year repayment plan and $11,000 over a 20-year repayment plan.
This is an excellent example of why you need to pay attention to what is happening in Washington D.C. There is a huge difference between Democrat and Republican positions in regards to financing of higher education. The Republican House Proposed Budget 2012 is not only calling for an end to subsidized Stafford Loans for students of low-income families, it also advocates for lowering the qualification for the full Pell Grant from a family income of $32,000 down to $15,000. $15,000? That’s not enough to raise a family in much more than a cardboard box on the side of the street. After adjusting for inflation, a $15,000 income threshold would be the least generous automatic- zero EFC provision in the history of the Pell Grant program, at a time when tuition is at historic highs. The Obama Budget on the other hand, has proposed legislation to keep the 3.4% interest rate for subsidized Stafford Loans for needy families and advocates an increase in the Pell Grant maximum from $5500to $5635 in 2012/13. Again, in a country as wealthy as ours this lack of support for the students of higher education is abysmal, but its far better than the Republican alternative.
Hard economic decisions must be made in this country if we are to reduce a $14 trillion debt. You must make your own call on who you support at the state and national level in regards to this and many other significant issues that face this nation. However, political choices that balance the budget on the backs of young people who are already suffering from crushing college debt, must be recognized and called out.
It is important for you to understand and consider these differences when making your own political decisions. Time to get informed people. Time to wake up!
