If you’re an older college student like me (I’m 28 and a Senior at UTD) and have student loans, then you’ve probably been keeping track of the news on the student loan interest rate. If you have no clue what I’m talking about, I’ve linked a few articles at the bottom for you to catch up with the rest of the nation.
Summary though … interest rates are due to double on July 1st from 3.4% to 6.8% unless Congress takes action. This increase was set back in 2007 when the interest rate was lowered. Now that the expiration is coming up, everyone is scrambling to figure out what action to take. Obama and Romney are both using this issue as a HUGE topic on their campaign trail because it effects so many people (and come on, everyone knows that the young peoples [18-29] vote is where its at right now).
So how does this effect you…?? Well, it’s up in the air right now. I’ve been trying to do some research on student loans and how it effects students once graduated. Being one who loves visuals, I came across a pretty nifty infographic that gives a generalization of the student loan bubble. It doesn’t take into account the projected interest increase but it does give you a sense of what’s already happening. I know there are many sides to this debate, interest rates should have never been lowered, students shouldn’t be allowed to get a loan on their own until a certain age, etc.; but, that’s besides the point at the moment. It’s been ingrained in our head that you go to college, get a degree, get a good job, pay off the student loans…but apparently that’s not what’s happening. So…what do we do now? I suppose we just wait and see what happens.
I’ll post some more infographics in this post if I find other good ones, or shoot me a message if you know of any good links to add in here!!
Links for more info on Student Loan Interest Increase:
Student Loan Rate Hike, What You Need To Know – CNN Money
Student Loans: A Long Journey of Confusion – Forbes
Strategies for Repaying Student Loans – Nasdaq