Tuesday, March 07, 2006

We Don't Need No Education.....

Courtesy the LA Times is an important heads up for anyone that has outstanding Stafford loans.

"The era of low-cost loans is ending, and interest rates on many federal education loans are poised to leap, starting July 1, because of congressional cuts.

The rate for so-called Stafford Loans, which represent the vast majority of federal education loans, will be fixed at 6.8%, compared with the current variable rate range of 4.75% to 5.38%.

The rate for loans taken out by parents on behalf of their children will increase from 6.1% to 8.5%."

If you are a parent with $20,000 of Stafford loans for your son or daughter your annual interest payments (just interest not principle) will jump from $1,200 to $1,700/yr.

Ouch...

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