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Think college is expensive now? Wait until July 1
CNBC ^ | 06/26/2014 | Sharon Epperson

Posted on 06/26/2014 5:43:45 PM PDT by SeekAndFind

Congratulations, graduates, on your diploma. Now what about that $29,000 student loan debt?

More than 70 percent of graduates will carry student debt into the real world, according to the Institute for College Access and Success. And the average debt is just shy of $30,000.

But the news will get worse next week when interest rates on student loans are set to rise again.

Though federal student loan rates are fixed for the life of the loan, these rates reset for new borrowers every July 1, thanks to legislation that ties the rates to the performance of the financial markets.

The interest rate on federal Stafford loans will go from its current fixed rate of just under 4 percent to 4.66 percent for loans that are distributed between July 1 and June 30, 2015.

For graduate students, the rate on Stafford loans will rise from just over 5 percent to 6.21 percent.

Direct PLUS Loans for graduates and parents are still the most expensive, with rates rising to 7.21 percent.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: college; debt; highereducation; studentdebt; tuition

1 posted on 06/26/2014 5:43:45 PM PDT by SeekAndFind
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To: SeekAndFind

$29,000 student loan debt? Young people today are taking out loans higher than that just to buy a car.


2 posted on 06/26/2014 5:46:54 PM PDT by SamAdams76
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To: SeekAndFind

How to go to college:

Get a job, two if necessary.
Live minimally, barely get by and put as much money into savings as you can.
Sponge off your parents as long as possible to avoid rent.
Invest your free time studying subject matter for future studies either online or at libraries.
After a few years you will have enough money to attend college, and will be debt free.
You will be debt free upon graduating college.
And your parents will be very proud of you.

Loans are for suckers.


3 posted on 06/26/2014 5:56:13 PM PDT by roadcat
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To: roadcat

I was able to tick off 2 years of vo-tech while in high school and the school system picked up the tab (thank you tax payers).

Worked my ass off the next to years to pay for the rest.

I would *never* go to a “college” that makes you take advanced basket weaving and other such crap as part of your major.


4 posted on 06/26/2014 7:34:43 PM PDT by cableguymn (It's time for a second political party.)
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To: SeekAndFind

AWESOME!!! My coffee will taste even better July 2nd.

Nothing flavors coffee like the sweet indebted tears of an art history major.


5 posted on 06/26/2014 8:19:01 PM PDT by Organic Panic
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To: cableguymn

My son in pursuing an Accounting degree while working for a tax accountant. No debt. And they will probably hire him after he completes school.


6 posted on 06/27/2014 7:04:45 AM PDT by Texas resident (The democrat party is the CPUSA)
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