Federal Stafford and Perkins Subsidized Loans to Have Higher Interest Rate in a Year

[JPZenger]

http://talk.collegeconfidential.com/financial-aid-scholarships/1131347-take-out-federal-loans-over-next-yr-before-interest-rates-go-up.html

The link describes how the interest rates of Stafford subsidized loans are scheduled to increase in 2012-13. Also, the Perkins subsidized loan program will expire at the end of 2011-12. It is proposed to be reconstituted with higher interest rates.

[abelenkpe]

1. 6.8 percent?

At least they will still be available. Not particularly worrisome either. They were 8 percent in the early and mid nineties.

[midnight]

2. Banks get discount rates from the Feds... they should pass this on to students.

Current Discount Rates
District Primary Credit Rate Secondary Credit Rate Effective Date
Boston 0.75% 1.25% 02-19-2010
New York 0.75% 1.25% 02-19-2010
Philadelphia 0.75% 1.25% 02-19-2010
Cleveland 0.75% 1.25% 02-19-2010
Richmond 0.75% 1.25% 02-19-2010
Atlanta 0.75% 1.25% 02-19-2010
Chicago 0.75% 1.25% 02-19-2010
St. Louis 0.75% 1.25% 02-19-2010
Minneapolis 0.75% 1.25% 02-19-2010
Kansas City 0.75% 1.25% 02-19-2010
Dallas 0.75% 1.25% 02-19-2010
San Francisco 0.75% 1.25% 02-19-2010
Current Interest Rates
Primary Credit 0.75%
Secondary Credit 1.25%
Seasonal Credit 0.20%
Fed Funds Target 0 - 0.25%

http://www.frbdiscountwindow.org/currentdiscountrates.cfm?hdrID=20&dtlID=51

[Davis_X_Machina]

3. Banks don't issue federal student loans any more...

...direct lending was an early Obama initiative.