In 2005, the cost of attending a private college was $29,026 per year on average, including room and board. For public universities, the average cost in 2005 was $12,127.
Sheldon Whitehouse is calling on lawmakers to stop the impending hike in the interest rate on student loans. Rates for student loans are set to increase by almost 2% on July 1, 2006. From a report released by the Whitehouse campaign:
The Budget Reconciliation Bill passed by Congressional Republicans cut $12 billion from federal student loan programs. $2 billion of the reduction in government spending on student loans will result from raising the fixed interest rate on PLUS loans from 7.9% to 8.5% for all loans disbursed after July 1, 2006. The Republicans in Congress put their true priorities on display by advocating $70 billion in tax cuts for the wealthiest Americans at the same time they were making federal loans $2 billion more expensive for parents.
Whitehouse also helpfully suggests that borrowers contact their lender before June 30 (that’s tomorrow!) to see if they can consolidate their loans at the lower rate.
Borrowers who have taken out at least one federal loan may be able to consolidate loans to lock in lower interest rates and save money, if they act by June 30. Information on federal student loan consolidation is available at http://www.loanconsolidation.ed.gov or by calling 1-800-557-7392.