Amid the rise in student loan rates as of July 1st, it has become significantly more difficult to select a student loan that best suits your needs. The day your child receives his or her college acceptance letter is a day filled with joy and celebration, but the impending realization of having to cover the cost is daunting. Thinking about selecting a student loan is intimidating and it’s hard to know where to start. Accompanied by the many options out there, the recent rise in student loan rates has made selecting the best loan for you and your family even more difficult.
On July 1st, the interest rates on federally subsidized Stafford loans doubled, soaring from 3.4 percent to 6.7 percent after Congress failed to reach a deal. Though lawmakers could potentially pass a bill to undo the damages, Congress has estimated an increase that will cost the average college student an additional $4,000. Currently, democrats have pushed to keep interest on Stafford loans low, believing that this will encourage students get a college education. On the flip side of the coin, Republicans have pushed to linking student loans to financial markets, rather than letting Congress set the federal lending rates.
Recently, a coalition of Senate democrats and republicans have come to a tentative agreement with President Obama that would appeal the recent spike in interest rates on new federal loans for college students. There is a tentative agreement that will move the student loan rate to a market-based rate. If this new deal is not reached by the start of the upcoming school year, roughly 7.4 million students with federal Stafford loans could end up paying up to $4,000 more in interest rates for a four-year degree. Student Loans FindTheBest: Now more than ever, families are feeling the additional pressure and costs of sending a child to college. It is important to understand that there are resources out there to help families in selecting the best student loans. Here is a resource that will help you search for, compare, and select the best student loan for yourself, your son or your daughter.
It may also help to take a look at specific colleges and student loans by state to gain a better understanding of the market. Let’s start by taking a look at student loans offered in California. If you intend to study in a different state, you can access a specific state directory at the bottom righthand corner of the student loans resource page.
In addition to the student loan resources above, the college comparison below will help provide you with student loan data for your specific University. It will help provide you with information such as the percent of students who receive student loans, the total amount of student loan aid, the average amount of aid, and similar information involving federal loan aid.
Verdict:
Although the rise in student loan rates may create a stressful transition from high school to college, it is important to understand that there are resources out there to help you overcome this major decision. FindTheBest’s student loan resources will help provide you with expert data and reviews on student loans and will ensure that you find the best possible loan for your family’s needs
