Monday, April 2, 2012

Stafford Loan Interest Rate Set to Double on July 1, 2012

On July 1, 2012 the interest rate charged by the US Government to students who take out Stafford Loans is scheduled to double. The current rate is 3.4% and on July 1 it will double to 6.8%. This increase affects more than 8 million students nationwide and 302,000 in Minnesota alone.

As outlined in the Time magazine article “Students, Your Loan Interest Rate is About to Double, it estimates that an average Stafford Loan recipient will pay an additional $2,800 more over a 10-year repayment term with the increased interest rate. It also states that a student who borrows the maximum $23,000 in subsidized Stafford loans will pay $5,000 more over 10-years and more than $11,000 more over a 20-year repayment plan.

MSUSA is dedicated to advocating that a reduced interest rate on subsidized Stafford loans be maintained and that it is not at the detriment to the Pell Grant.

To take action today please call or email Rep. John Kline’s office and ask them to keep student interest rates at the current level.

Contact Congressman John Kline
To contact Congressman John Kline, please click here.

Congressman Kline's Minnesota Office
101 West Burnsville Parkway, Suite 201
Burnsville, MN 55337
Phone: (952) 808-1213
Toll-Free: (888) 808-6644
E-mail: Click here
Fax: (952) 808-1261

Congressman Kline's Washington Office

2439 Rayburn House Office Building
Washington, DC 20515
Phone: (202) 225-2271
E-mail: Click here
Fax: (202) 225-2595

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