On Wednesday, President Obama proposed a major shift in the interest rate calculation for federal student loans: tying the rate to the government’s cost of borrowing, which is a variable benchmark. Currently loan rates are fixed by statute. Prospects for enactment of the Obama plan are uncertain. But Congress faces pressure to at least debate loan policy because the rate on a key type of loan will double — again, by statute — on July 1 unless lawmakers intervene.
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Released: April 12, 2013
Obama and student loans: A closer look
Source: Nick Anderson, Washington Post (Free Registration)
Pity the 18-year-olds and their parents who are trying to make sense of the student loan market as the May 1 deadline nears for choosing a college. There are federal Stafford loans, subsidized and unsubsidized. There are federal PLUS loans for parents and graduate students. There are federal Perkins loans. There are private loans.
Read Full Article: Obama and student loans: A closer look
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