Media taking an interest in interest?
While this doesn't deal directly with the issue of refinancing consolidation loans, it seems important to note this article from PR Web that notes: "A petition by Congressman John Boucher (R-Ohio), seeks to eliminate consolidated fixed interest rates entirely. With the federal cap on student loans as high as 8.25%, Rep. Boucher's proposal could equate to higher monthly payments and thousands of dollars in unnecessarily paid interest for student borrowers."
The article also mentions Presidential candidate John Kerry's take: "'This proposal would leave thousands of struggling students with thousands of dollars in higher interest payments on their student loans. This will do a great service to lenders, but cause great harm to students.'"
Nice to see the media and Kerry noticing that a proposed bill would hurt students when they're trying to pay back their loans after graduation. Now, how about noticing that little lack of refinancing options for graduates who've consolidated?
Comments
I am one of those struggling with the consolidation nightmare. After taking out many loans to put myself through a prestigious Music school, figuring that I would now be tenured as a Music teacher on LI, I consolidated my Staffords and was given a 7.625% fixed rate that has given me about a $400.00 a month in interest alone headache of which there is no remedy. I am not working as a teacher making 40+K a year and because of this I am just accruing more and more debt each passing moment. Should Congress decide to eliminate the fixed rate, I would not be able to pay this off in my own life time, barring winning the lottery. If however, they decide to allow us to refinance our loans at the current rate... well then maybe I could leave my children (who have yet to be born) without my debt as their only inheritance.
Posted by: Darrin | July 28, 2004 07:19 PM
What I'd like to know is why is the federal gov't not giving students the option of who they want their loans with after defalting, and getting back in good standing. My loans were automatically sent to Sallie Mae, after paying over a year to the Dept of Ed. I called Sallie Mae's customer support yesterday, and ended up talking to someone in India, who told me there was nothing they could help with because the computers were being updated. I understand updating computer systems. What I do not for the life of me understand is why we have sent all these jobs to India. There are lots, and I mean lots of unemployed graduates out here that need a job, and there goes another one to India. So does the gov't expect us to pay back these loans when we can't find jobs in our respective fields, when they have gone to India. Check this out, we are losing IT, accounting, and medical jobs, just to name a few. And from what I've been told by other companies when I've called to switch and consolidate to another company, is that Sallie Mae will not release any of their loans(excuse me, I thought it was my loan) for consolidation with any other company providing that service.
Gotta make a person wonder!!!!
Posted by: Patti | August 4, 2004 11:44 AM