Federal student loan rates shouldn't be higher than mortgage rates nor higher than the inflation rate.. I strongly believe there's a strong correlation between high student default rate and high interest rates. The principal balance compounding at a high interest rate makes it very difficult for students to lower their principal balance whenever making small payments (hence, there's no motive to pay down the balance). I'm currently taking graduate courses and have a $65,000 student loan balance with 6.8% interest rates. Loans are currently in deferment. There's no incentive for me to make a $100 payment towards my student loan today while in school because all of it goes towards interests and. Please do all you can to lower interest rates.
This is historical material “frozen in time”. The website is no longer updated and links to external websites and some internal pages may not work.
