House Votes to Keep Student Loan Interest Rates Low for 2012-13: A Good Move?

The Wall Street Journal reported that the House today passed a resolution to keep the current interest rate on student Stafford loans at 3.4% for the 2012-13 school year.   The Senate is scheduled to vote on a similar bill on May 8th.  Without Congressional consensus, student loan interest rates will increase to 6.8% for the 2012-13 school year.

While interest rates may not rise for the upcoming 2012-13 school year, given its an election year, families and students should plan forward for increasing costs of borrowing money for college in subsequent years of college.

Be prepared for continued debate on student loan interest rates.  Some Republicans are proposing variable interest rates in the future on student loans.  (Currently, interest rates are fixed for the life of the loan.)  President Obama has been speaking at college campuses in the last week, even appearing on Late Night with Jimmy Fallon.

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About Jill Yoshikawa, Ed M, Partner of Creative Marbles Consultancy

Jill Yoshikawa, EdM, Harvard ’99, a seasoned, 25 year educator and consultant, is meticulous in helping clients navigate all aspects of the educational experience, no matter the level of complexity. She combines educational theory with experience to advise families, schools and educators. A UCSD and Harvard graduate, as well as a former high school teacher, Jill works tirelessly to help her clients succeed.
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