As part of the deal to keep student loan government subsidized interest rates at the current levels, rather than have them double in July 1, 2012, a deal was struck. But if you are a graduate student, the cost of your education just got a whole lot more expensive as a result. Congratulations.
In the past, students pursuing graduate degrees got a break and interest didn’t get added to their balance while they were still in school. You can kiss that perk goodbye. Starting Sunday, graduate students will have the interest added to their balances while they are pursuing their graduate degrees.
Undergraduate students who used to get a six month break after graduation will now get no break and interest will begin to be tacked on on day one.
On top of this, the hold placed on doubling the student loan interest rate is only good till 2014. As it stands now, anyone that applies for a government subsidized student loan that is anticipating repaying after June 2014 should plan on the interest rate charged to double.
With the increases in college tuition and now this looming over future student loans, people need to stop repeating the mantra that a college degree makes things better and start evaluating the economics of getting and paying for that degree. There will come a time, and maybe soon, when it no longer makes any economic sense to pursue a college degree. At the very least, students need to have their eyes wide open as to the real and actual costs so as not to be painfully surprised.Graduate Students Really Screwed in Congressional Student Loan Deal by Steve Rhode