car loan for college student
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Students rush to lock loan rates
WASHINGTON - Students are rushing to lock in favorable interest rates on their college loans before a nearly 2.0 percentage point rise July 1.
The rate rise affects college undergraduates who hold federal "Stafford" loans, the most affordable type of student loan, as well as college graduates who still carry debt they racked up in college, and parents who took out "Parent PLUS" loans.
Interest rates on existing Stafford and PLUS loans readjust annually on July 1 at a premium over the 91-day Treasury bill rate, which has risen nearly 2.0 percentage points over the past year thanks to the Federal Reserve's current monetary policy tightening cycle.
Variable-rate federal loans will no longer be available after July 1, when the new law comes into effect.
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Degrees putting many deep in debt
DALLAS - There's no disputing that a college education is a great investment. College graduates can expect to make $1 million more over their lifetime than someone with just a high school diploma.
But more college graduates find it's taking longer to pay for their investment. As student loans have become a larger part of the college tuition bill, many graduates are leaving school with unmanageable debt levels that can affect their financial security, career and lifestyle choices for years after college.
"A college degree is a good investment and becoming increasingly necessary," said Luke Swarthout, higher-education associate with the State Public Interest Research Groups, a consumer organization. "But more of the cost of college has been pushed onto the shoulders of students.