Bush screwed the middle class: PLUS loans 7.9% by his decree [View All]

[caligirl]

I came adross this on a web site tonight. Class war fare the bush way. If you are thinking of financing college tuition with a parent plus loan next year, you should read this. some are thinking of taking out larger PLUS loans in the front half of the year at the current and much lower rate.



On February 8, 2002, President Bush signed legislation (Public Law 107-139) changing the interest rates on education loans from variable rates to fixed rates for new loans issued after July 1, 2006. The interest rate on the Stafford Loan will be 6.8% and the interest rate on the PLUS Loan will be 7.9%.

There is some hope that this legislation may be repealed when the Higher Education Act is reauthorized in Congress this year or next but as things stand now this is how it will be.

http://straylight.law.cornell.edu/uscode/html/uscode20/usc_sec_20_00001077---a000-.html
Look near the bottom for the PLUS loan after July 2006

(l) Interest rates for new loans on or after July 1, 2006
(1) In general
Notwithstanding subsection (h) of this section, with respect to any loan made, insured, or guaranteed under this part (other than a loan made pursuant to section 1078–2 or 1078–3 of this title) for which the first disbursement is made on or after July 1, 2006, the applicable rate of interest shall be 6.8 percent on the unpaid principal balance of the loan.
(2) PLUS loans
Notwithstanding subsection (h) of this section, with respect to any loan under section 1078–2 of this title for which the first disbursement is made on or after July 1, 2006, the applicable rate of interest shall be 7.9 percent on the unpaid principal balance of the loan.

I' m still looking for a f. aid site to post.

Edit for one more: pdf file newsletter. Article http://www.aessuccess.org/higher_ed/fin_aid_pub/loan_notes/Vol_7_No_1.pdf

Interest rate "fix"legislation signed by Bush.