Bush screwed the middle class: PLUS loans 7.9% by his decree

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There is some hope that this legislation may be repealed when the Higher Education Act is reauthorized in Congress this year or next but as things stand now this is how it will be.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

[babylonsister]

1. Hey, caligirl. Can I have a link, because this

should be spread far and wide.

[caligirl]

5. Had to go back to the site, will get a link shortly.College Confidential

web site.

[Zuni]

2. You don't say!

Bush looking out for the interests of a small group of fellow millionaires? Never, I say!

[Viva_La_Revolution]

3. link

all the way at the bottom of the page...

http://www.fafsa.com/announcements.htm

In a surprise legislative maneuver, President Bush signed into law Public Law 107-139, which will change the interest rate of Federal Stafford and Direct Loans and the Parent Loan (PLUS) to fixed rates. The student Stafford/Direct Loan will be fixed starting on July 1, 2006 to 6.8 percent while the Federal Parent Loan to Undergraduate Students (PLUS) will be set at a fixed rate at 7.9 percent. The bill appears to favor lenders, secondary markets and guaranty agencies (and not student or parent borrowers). The Congressional Record indicates that the Texas Association of Student Financial Aid Administrators (TASFAA), Association for Texas Lenders for Education (ATLE), the U.S. Student Association, American Council on Education, Sallie Mae and the Consumer Bankers Association endorsed the bill.

review the entire text of the bill (PDF).

[caligirl]

6. Thanks for getting this. The person posting the info at the web site I was

at did not post a link, i have been trying to find one.

[TheModernTerrorist]

4. holy shit

my loans are all at a fixed rate of 3%

wow. that's some scary shit for all us poor college people.

[AP]

7. Make the people who can afford it the least pay the most = GOP values.