Sunday, January 07, 2007

Cutting Interest Rates Report

USPIRG's Higher Education Project just released a new report looking at what the Congressional proposal to cut interest rates in half will mean for students. The interest rate cuts will benefit students with subsidized Stafford student loans.

About 5.5 million students have those loans with most coming from low and middle-income families. 75% of traditional-age students with sub Stafford loans comes from families with $67,000 or less in family income. (for perspective-the median 4-person family income in the US is $65,000)

The interest rate cut will save the average borrower about $4,420 over the life of their loan. Because the cut will be phased in over the next five years a student starting school in the fall of 2007 would save $2,280 over the life of their loan.

1 comment:

Anonymous said...

Hi Anya !
Congrats on all your achivements. Your observations are mature and very insightful. I watched you on a documentary on Detroit Public TV and you have really inspired me to write a book on simillar issues but specifically to immigrants who take their chances to come to the USA to study and find that great job that will allow them to move beyond their economic class that they were previously relegated to in their own country. My email is if you have any advice for me. Thanks Anya !