<p>Others may have posted about this before...there's a bill that might pass changing student loan laws to bring interest rates down (among other things):</p>
<p>I think this is great for new students but for ones like myself it kind of blows...our interest rates are locked and due to the new lending restrictions consolidation companies won't be able to offer any rate reductions. If the bill passes, what options will really be open?</p>
<p>Color me cynical. When the government acts to make college more affordable, no matter how well intention, colleges know they can increase tuition. In effect the government is not subsidizing students, they are subsidizing the colleges and the lending institutions. College will be no more affordable in 5 years - when the legislation would take full effect - than it is today.</p>
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Color me cynical.
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<p>Agreed. Example: student loan consolidation rates are at some of their best right now. The Educational Loan Company offers interest rate reductions of 2.5% through benefits packages, Nextstudent 2.25%. The new regulations will most likely shrink these companies' profit margins to such a degree that they'll go out of business, leaving the market to Citibank, Wellsfargo, etc... So it's a mixed blessing and with raised tuition rates students really won't be paying any less. As for options, we'll just have to see what happens (those of us still in school can't consolidate yet) :( . I wish I could at least say that the bill was made with good intentions, but I doubt even that. The cost of higher education in this country is rapidly becoming a serious health-care like problem (maybe that'll be Michael Moore's next project...).</p>