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View Diary: Federal student loan interest slated to rise back to 6.8% (43 comments)

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  •  I took out a student loan at 7%. (4+ / 0-)

    That was in 1986. $8500. was sufficient for five semesters at a private college (SFAI). Cal grants and Pell grants paid for 3/4 of my tuition, and I was able to use the loan money to help cover art supplies and living expenses.

    In other words, tuition and living expenses were significantly lower than they are today. Grants for low-income students covered more. Part-time work was easy to come by. Today, most of those circumstances are gone. Lower interest rates are a must for an education to be halfway affordable.

    curious portal - to a world of paintings, lyric-poems, art writing, and graphic and web design

    by asterkitty on Fri Mar 29, 2013 at 09:20:42 AM PDT

    •  UMass in '98 cost $5K/semester (2+ / 0-)
      Recommended by:
      radical simplicity, Odysseus

      and loans didn't cover cost of living in any way. Even with 2 part time jobs, I couldn't finish because of the cost. No idea what the interest rate was, but I made sure to pay that sucker off before even considering buying a house.

      "I just wanted to bring down your grim facade and for once, let you see the world as I see it. Giggling in a corner, and bleeding; but you've denied me even that." - The Joker to Batman, Arkham Asylum.

      by DeathDlr73 on Fri Mar 29, 2013 at 09:31:18 AM PDT

      [ Parent ]

      •  good for you... (1+ / 0-)
        Recommended by:
        Lasgalen Lothir

        most here think those loans should just be flushed down the toilet.

        _"Love is the rosebud of an hour; Friendship the everlasting flower."_ Brook Boothby

        by Keith930 on Sat Mar 30, 2013 at 07:08:46 PM PDT

        [ Parent ]

        •  No (3+ / 0-)
          Recommended by:
          sandblaster, Eyesbright, jfdunphy

          The reality is that stafford int rates should be lowered to reflect the 10 year treasury rate. At 3% the interest charge would in effect give the middle class an instant raise. It's a stimulus package that would help the economy get back on a growth path.

          •  yeah..that's convenient (1+ / 0-)
            Recommended by:
            Lasgalen Lothir

            How about you pay my electric bill and fill my freezer with some meat.  That will stimulate the economy as well.

            _"Love is the rosebud of an hour; Friendship the everlasting flower."_ Brook Boothby

            by Keith930 on Sat Mar 30, 2013 at 07:31:52 PM PDT

            [ Parent ]

            •  And how does this comment (1+ / 0-)
              Recommended by:
              lurkyloo

              Advance civil discussion?

              We spent a trillion dollars bailing out the banks in 2008 and 2009.

              Student loan debt is at least a trillion dollars today. The wrong question is being asked by congress. I certainly never said zero the loans out.  I implied that treasury would actually increase loan repayment rates with an interest rate reduction.

              Treasury can borrow at essentially 0% from the bond market. Treasury is still making money at 3%.

              If we don't take steps to make repayment possible large chunks of the debt will just be written off with the death of the borrowers.

    •  Art student here as well. (2+ / 0-)
      Recommended by:
      asterkitty, jfdunphy

      Unfortunately I had to go private. Grants and public loans combined don't even fully cover my tuition, but my family is supportive so several members are dipping into what little savings they have to help cover the difference in order to keep me from having to rely on private loans with exorbitant rates.

      It really is disgusting the expecting that any person who wants to train for almost any sort of professional career is expected to load up with such massive amounts of debt before they even get their foot in the door.

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