Minnesota may be #4 but with John Kline’s new student loan program, that may change …
States with the highest amount of average debt for students graduating with loans in 2012
New Hampshire: $32,698
Rhode Island: $31,156
New Jersey: $29,287
#4 is not where students (or loving parents) want to be … but the news that next year the rates will be higher :
Current interest rates on federal student loans
Loan type (based on loans taken out between July 2013 and June 2014)
Direct Subsidized and Unsubsidized Loans (for undergraduate students) 3.86%
Direct Unsubsidized Loans (for graduate/professional students) 5.41%
Direct PLUS Loans (for parents and graduate/professional students) 6.41%
Estimated new rate on loans taken out between July 2014 and June 2015
Direct Subsidized and Unsubsidized Loans (for undergraduate students) FROM 3.86% TO 5.09%
Direct Unsubsidized Loans (for graduate/professional students) FROM 5.41% TO 6.64%
Direct PLUS Loans (for parents and graduate/professional students) FROM 6.41% TO 7.64%
OK … so rates are going UP … and who will profit ?
According to this report from University Herald : The U.S. Department of Education is turning in a major profit and has forecast making about $127 billion over the next decade from federal student loan borrowers.
“This is a profit-making machine for the Education Department,” Chris Hicks, of the Debt-Free Future campaign for Jobs With Justice. “The student loan program isn’t about helping students or borrowers – it’s about making profits for the federal government.”
And that did not have to happen … President Obama offered a plan that would have reduced the current rates but Chairman Kline refused to accept that … evoking his claim of the “Imperial President” (while stating that that President Obama were legal) but pushed for legislation to tie student loan interest rates to the market … but Chairman Kline would not accept the minimum processing fee that President Obama suggested … instead demanded a rate that would ensure the US Treasury would make money.
Rather than be concerned with an “Imperial Presidency”, the “Imperial Chairman” has forced higher rates on students.
This is the cost of Chairman John Kline … and the cost to future generations who will be impacted when it’s time to buy that first house or raise children.