Tag Archives: Stafford Loan

Student Loan Debate

When student loan interest rates were temporarily reduced from 6.8%to 3.4% a few years ago, it was to relieve those who had subsidized Stafford loans during tough economic times. The problem with giving temporary relief to group of individuals who are relatively new to creating personal budgets (recent college graduates) is that they rarely ever prepare for when the temporary relief ends. However, the idea of offering temporary relief in this case was that the economy was bad, so we’d make it easier on those with students loans to handle their debt Then when the economy rebounds and things look better for them, we can return interest rates to pre-relief levels.

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