Update: The Senate passed a bill that the House looks like it will sign off on.
Student Loans will no longer be fixed, they will be tied to the 10 Year Treasury Note and reset every year (with a cap of 8.25%). In the short term, students will pay 3.86% (instead of the scheduled 6.8%). Here’s a good summary.
In the future, rates are likely to be higher, as Treasury Note rates rise. This is an issue for House Democrats, let’s see what happens!
For a more detailed explanation of how financial aid works – strategies to improve eligibility, minimize or flat-out avoid loans and pay less for college overall, watch my College Financial Aid “Secrets” Workshop, online.
– Andy LockwoodLockwood College Consulting 497 South Oyster Bay Road Plainview New York 11803 516,882,5464
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