Don’t Double Our Rates!

Federal student loan interest rates are, once again, scheduled to double come July 1st, 2013.

Student Debt Crisis, partnered with Student PIRGs, wants you to stand in solidarity with students and families across the country preparing to start college who face a 6.8% interest rate.  Here’s how you can show your support:

Let congress know, “Don’t Double Our Rates!”

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10 thoughts on “Don’t Double Our Rates!

  1. Trust me, I support this, but I’m pretty irritated that my 6 figure consolidation loan is at 6.875% too. I didn’t matter that new loans were under 4%; they only based it on the original eate and I was charged 8.25% on most due to a crappy government policy. Student loans need to be assessed on so many levels. I’d prefer for consolidation loans to float with market rates and never exceed 8.25%. I’d be much better off!

    PS if you are subject to a rate hike, you may want co consolidate before your interest only payment is $850. There is no way I’ll pay it off so I hope the Public Service Student Loan Forgiveness program comes through!

    • Yikes! Even 8.25% is high. Maybe it wouldn’t be so bad if there wasn’t capitalized interest. I’m supposed to pay about 235% of my original balance because of the capitalized interest. Simple interest would make it much more reasonable.
      I took advantage of the special direct consolidation they were offering temporarily last year. All my federal loans are still separate and each loan that was moved from Sallie Mae to DOE had a .25% rate deduction. I’ve still got a couple loans at 6.8% but that’s nothing compared to my 8.25-9.75% rate on my private loans.

  2. WHAT!?!?! I’ve never heard of such a thing. ”Student loans” are so different around the world. We pay prime+2% here on federal issued loans (5.5% right now) and have the option of locking in fixed or having rotating interest rates. This is nuts!

    • Is it just simple interest in Canada? Or do you have capitalized interest as well? Higher education/student loans are so different around the world, but it seems everywhere has a better, more affordable, system than the US.

  3. I no longer have student loan debt, but I fail to see why people aren’t allow to refinance at much lower interest rates that are available for almost anything else. 6.8% is crazy right now!

    • Yes, it is crazy. It’s because student loans were stripped of consumer protections by heavy lobbying from lenders like Sallie Mae. It’s pretty ridiculous how we treat student loans so differently from other consumer debt.

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