On July 1, 2013, interest rates on Stafford student loans will increase from 3.4% to 6.8%. This will result in an increase in the monthly payment required to service or pay these loans.
For example, if you have $50,000 in student loan debt and your interest rate is presently 3.4%, your payment is approximately $492.09. At the end of the ten year payment term, the amount that you will have paid back for that $50,000 student loan will be approximately $59,050.80. With an increase in the interest rate to 6.8% that same $50,000 student loan debt, will result in an increase in your monthly payment to approximately $575.40 per month. At the end of ten years, you will have paid back $69,048.00. With car payments, rent or mortgage payments, gasoline, food, utilities, daycare (if you have children), can you really afford your student loan payments to increase?
U.S. Senator Elizabeth Warren is proposing a bill entitled Bank On Student Loan Fairness Act. If passed this bill would allow individuals paying student loans to have the same access to low interest as the large banks enjoy. But, Congress does not move fast. But you can take action before the increase becomes reality.
Call us at (706) 872-7117 for a free consultation. Let us show you how you can get relief from all of your debt.