By: Dale Henderson

Dale Henderson — Thu, 08 Mar 2007 16:33:29 +0000

Obviously you don’t understand the full details of this bill and it’s additions (Sunshine Act & Star Act). Rightfully so, since its sugar coded with, “It’s going to lower your student loan interest rates”!Yes, loan rates will drop but .68% every year for the next 5 yrs, it’s not an instant drop and it’s ONLY on subsidized loans that are issues after 7/1/2007. Most student loan borrowers loans are made up of unsubsidized loans which will not be reduced at all. Also, loan rates will return to 6.80% once the 5yr term is over, just in time for those new graduates to become responsible for the interest on these loans. Hmmm, sounds like the govt is just giving themselves a break. Additionally, increasing the fees to private lenders will force a lot of these lenders out of the student loan industry, minimizing borrowers choices and reducing incentives only FFELP lenders give to borrowers. The government is trying to monopolize the industry with this bill and it’s additions. THESE BILLS ARE BAD NEWS FOR STUDENT LOAN BORROWERS!I advise doing your online research, you’ll be shocked at all the hidden things these bills are going to do student loan borrowers. There’s a new website I found researching online, http://www.studentloantax.org which has tons of content and facts about H.R.5. Check it out before you sign any Petition! If you do not agree with H.R.5 contact your states senator at: http://www.senate.gov/general/contact_information/senators_cfm.cfm . A phone call takes less then 60 seconds to voice your opinion.

By: Felix Valencia

Felix Valencia — Sat, 03 Mar 2007 01:53:59 +0000

What you dont know is that the lowering of the rate is actually on the subsidized portion of the loans and those loans do not collect interest while the student is in school, so the student is paying no interest on that loan. So who pays that interest? Why good ol’ uncle sam, why would they want to cut the interest rate on a loan that does not accumulate interest, they need to do it on the loans that do like unsubsidized. This bill is up side down. It’s so hard to get qualified for these unsub loans you need to be below poverty. For ecample a freshmen starting out in school will get a 2,275 dollar stafford loan, maybe a portion of that will be subsidized but the bulk will be unsubsidized. Lowering the rate on a loan that the student does not have to pay interest on is simply retarded

Comments on: Young Democrats HR 5 Student Loan Interest Rate SMS Petition

By: Dale Henderson

By: Felix Valencia