- The interest rate on many student loans is scheduled to double on July 1, to 6.8 percent from 3.4 percent
- Federal government makes 36 cents in profit on every student-loan dollar it puts out, and estimates that over all, student loans will bring in $34 billion next year.
- Last April, in his re-election campaign, President Obama made a central issue of stopping the Stafford interest rate increase.
- Now that the lower rate is about to expire, there is general agreement that it should not double. But a solution is unclear.
Categories: Capital Markets