On this page you’ll find links to the latest education and financial aid news from some of the most trusted sources in the industry, including The Chronicle of Higher Education, Insider Higher Ed, The New York Times and The Huffington Post.
For analysis, editorials and additional information, be sure to visit Knowledge Bound: The RSC Blog!
Congress Close to Compromise on Stafford Loan HikeJun 25, 2012
Associated Press – Congress is said to be close to a compromise on keeping the interest rate on Stafford student loans from doubling on July 1. According to insiders, Republicans have agreed to increase the charges companies pay to insure their pension plans while eliminating certain tax deduction they can take on those same plans; Democrats have agreed to limit the subsidized period for Stafford Loans to six years. It currently lasts until the student graduates or drops out of college. Legislators may also be looking to save money by cutting certain items from the budget that the two parties had agreed on in the past but never cut. Keeping the interest rate at 3.4%, rather than 6.8%, is expected to cost the federal government $6 billion dollars and affect 7.4 million students. For more, read Hill Dems, Republicans Say Compromise in Sight to Avert Student Loan Interest Rate Hike.