The Stafford Loan interest rate increase is just too damn high. We petition Congress to stop the Stafford loan interest rate hike set to take place on July 1, 2012. Under proposed rate of 6.8%, a Stafford Loan borrower with a graduation debt of $45,000 requires starting salary of at least $62,351 to allow 10% of income towards repayment on ten year plan. At 3.4% rate, this same student would require a starting salary of $53,399. Per Federal Budget 2011:Government Old Age Employee Pensions and Trusts at 21.7%,Social Security payments at 1.6%, Education at 3%. Per 2011 Budget Request by the Department of Education: ‘For Direct Loans in 2010, the overall weighted average subsidy rate is estimated to be -7.75 percent; the program is projected to earn about $7.75 on every $100 originated.’
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 The website is no longer updated and links to external websites and some internal pages may not work.
