Sen. Alexander: Student Loan Reform Savings Should Be Used To Lower Interest Rates On Federal Loans
Posted on | March 7, 2010 | No Comments
From the Washington Post:
should return it to students as lower interest rates, not trick
students by overcharging them so Washington can create more government
programs.
Seven-eighths of students who applied for federal aid using the Free
Application for Federal Student Aid (FAFSA) had an average loan debt of
$24,651. Assuming a standard 10-year repayment at 6.8 percent, those
students would pay roughly $9,400 in interest. If we really want to
save students money, why not just reduce the interest rate by 1.5
percentage points, to 5.3 percent, saving students $2,240 in interest?
If this Washington takeover happens, I propose that all 19
million-plus student loans made by the government carry this warning
label:
"Beware: Your federal government is overcharging you so your
representative can take credit for starting new government programs.
Enjoy the extra hours you work to pay off your student loan."
View full post on Student Lending Analytics Blog
Tags: Alexander > Federal > Interest > Loan > Loans > Lower > Rates > Reform > Savings > Sen. > Should > Student > Used
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