What is the current interest rate on private student loans?
I keep reading how Obama's government is profiting from student loans, but the House of Representatives refused to stop the student loan interest rate from doubling on July first, 2013. Student loan rates went from 3.4% to 6.8% overnight.
And now Congress has managed to make the interest rates on government backed student loans variable by tying them to the 10 year treasury bond rate + 2.05% for undergrads and +3.6% for grad students.
I haven't heard a single media organization publicize the current interest rate on student loans. I can't even find a single private student loan interest rate anywhere on the Internet.
When I went to college, every bank in America was publishing their student loan interest rates and the 10 year treasury bond rate was 11%.
So the current rate is 2.6% + the 2.05% is 4.6%. Remember that the Fed will stop purchasing US bonds as the unemployment rate dips and when that happens, the 10 year bond interest rate will explode.
As the economy increases so will the interest rates on student loans. This is ridiculous.