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View Diary: Senate passes student loan interest rate bill to make students pay more (42 comments)

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  •  can you clarify for me... (0+ / 0-)

    The rates on a loan that student takes out this year... they can change in the future?  Of the rates for loans that will be taken out in the future will change?

    Based on what you wrote, it sounds like the former... and if that's the case, this is really terrible, since the borrowers will have no idea of their interest rate from one year to the next.  Kind of like the variable interest mortgages that helped tank the economy... brilliant!

    "The death penalty is never about the criminal. They've already done their worst. The question is always "will we join them"?" - jlynne

    by Hopeful Skeptic on Wed Jul 24, 2013 at 03:42:42 PM PDT

    •  apparently... (0+ / 0-)

      it is not as bad as I feared
      source

      Republicans proposed having interest rates re-set each year, but the new bipartisan Senate bill would keep interest rates the same for the life of the loan.

      "The death penalty is never about the criminal. They've already done their worst. The question is always "will we join them"?" - jlynne

      by Hopeful Skeptic on Wed Jul 24, 2013 at 03:59:31 PM PDT

      [ Parent ]

      •  Better if rates don't rise. And they will most (2+ / 0-)
        Recommended by:
        gmfp, Patango

        definitely since they are at historic lows.  This is simply a screw job brought to you by Obama and the Senate Dems.  They have made it worse for student loans than Bush did.  Can you imagine that?

        The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt. Bertrand Russell

        by accumbens on Wed Jul 24, 2013 at 04:39:25 PM PDT

        [ Parent ]

        •  Permanently low? (0+ / 0-)

          Do you really think that student loan rates should remain at 3.4 regardless of the rest of the economy?

          If we went back to 70s style inflation would it make sense to be able to borrow money for less than the rate of inflation?

          Personally, I'd tie to the Treasury rate +x (~+3.5%).  Then it'll float with the economy, but can't easily balloon.

          The Empire never ended.

          by thejeff on Wed Jul 24, 2013 at 04:48:25 PM PDT

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          •  What's the point of government student loans (6+ / 0-)

            if the rates aren't much better than market rates?  Why have them at all?  Historically, they have been cheap because the government subsidizes them.  What is happening is that the government is now making money off of them.  If you think that's ok, then fine.  

            The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt. Bertrand Russell

            by accumbens on Wed Jul 24, 2013 at 05:27:40 PM PDT

            [ Parent ]

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