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January 16, 2006

Student loans are getting much more expensive

This is the article on student loan reform, and I can't help but laugh and quote, "... the changes probably will cost borrowers more money, but their long-run impact remains to be seen." That is according to San Francisco Chronicle.

Probably cost more money? Hello, for those poor schmucks whose loans will be disbursed on or after July, 1 the student loan rates are going up by 2%, to 6.8%. And the student parent Plus loans rates which are currently at 7.9%, will likely go to 8.5%. I guess many retiring boomers will have to sell their nice vacation homes in warmer states or ski resorts to pay for children's college.

Of course, the students will be able to borrow more money, just to repay more I guess, and certain fees that are often covered by lenders will be slowly phased out - big deal, and there are other cosmetic things that intend to provide the impression that everything isn't that bad on the long run, but whom SF Gate is kidding?

Posted in Student Loans at January 16, 2006 12:20 PM

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