Summary:
This article is about Obama signing a new bill that will lower the student interest rate. It will also allow undergrads, graduate students, and parents to borrow more money. The rates will be locked for this years, but as each year progresses the rate can increase if the ten year treasury note increases. For undergraduate student the rate can not increase more that 8.25% for undergraduate students, and 10.5% for graduate students. This rate goes into affect for the Strafford loan, which is the most common loan for college students when needing to borrow money. The student borrows money from the government and the government expects that payment plus interest on the amount borrowed. These loans are available for almost any college student, including foreign exchange.
Analysis:
From what I have read this is a major improvement in our educational system. Lowering the student interest rate will help students who have graduated, or been to school at the collegiate level. This affects all the students in the country as well as the world who travel to different countries to go to school. When he also put a cap on the interest being no more than 8.25% this gives a sigh of relief to many students who are attending college, or are still looking to go to college in the future. We are moving forward with helping students whoa re going to school because we don't know what the future holds for us. Many of the students that go to school are scared that they are not going to be able to pay off the interest before they go into retirement. This affects all parts of the family as well as the nation as a whole.
http://www.forbes.com/sites/troyonink/2013/07/31/new-student-loan-rates-3-9-for-students-6-4-for-parents/
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