Economic Conversation

With President Obama being such a strong advocate of education, student loan rates are going to continue to get lower over the next four years.  For anyone with current student loans, you have probably noticed that the interest rate you are now paying is much lower than anytime in the recent past.  Part of this is due to the troubled economy but a lot of it has to do with President Obama and his administration spending a low of money on furthering education.

From the Sallie Mae website:

• The interest rates for subsidized Stafford loans for undergraduate students are:
• For loans first disbursed July 1, 2006-June 30, 2008, the interest rate is fixed at 6.8%.
• For loans first disbursed July 1, 2008-June 30, 2009, the interest rate is fixed at 6%.
• For loans first disbursed July 1, 2009-June 30, 2010, the interest rate is fixed at 5.6%.
• For loans first disbursed July 1, 2010-June 30, 2011, the interest rate is fixed at 4.5%.
• For loans first disbursed July 1, 2011-June 30, 2012, the interest rate is fixed at 3.4%.
• For loans first disbursed on or after July 1, 2012, the interest rate is fixed at 6.8%

As you can see from the data above, it is going to be very afforable for individuals to further their education through a subsidized Stafford loan over the next four years.  Some of the brightest minds in this country need a university to assist them in furthering their education and this is exactly what President Obama is offering those students.  I am quite excited we have a president that value education and is working hard to allow anyone to go to college while getting a low interest rate on a student loan.

For anyone interested in applying for a student loan, the process is located here. It may be a daunting task for many young adults who have never had to make important financial decisions in their lives but it could help you to get the education you want.  There are also some very good student loan resources available at Bankrate.com.

Most major universities have everything set up for you through their financial aid department so please make sure to contact the university you will be attending to get further information.  Sometimes it is as easy as applying for financial aid and letting the university sort out where the money is going.  If you university financial aid office forces you to do it all by hand Sallie Mae offers all the tools you will need.