Great news, college students! You know that student loan rate hike you and President Obama have been whining about incessantly? Well, Congress voted Friday to freeze the rate at 3.4 percent for one more year.
Now you can take out hefty loans to pay for career-advancing courses on “The Phallus” and “The Unbearable Whiteness of Barbie” at Obama’s alma mater and you won’t suffer the untenable burden of an extra $7 a month in interest.
So why the frowny faces?
Aw, you thought preventing the rates from doubling to 6.8 percent could be done with the awesome power of unicorn dollars and rainbow dreams alone?
Next semester, try math courses.
The federal government isn’t an unlimited pot of gold at the end of Obama’s rainbow. Due to previous compromises, the six-month post-graduation grace period for new undergraduate loans will no longer be subsidized. Oh, and beginning in July, Uncle Sam won’t foot the interest bill for grad students while they’re still in school. That subsidy was already eliminated to help fund loans for low-income students.
Stafford loan rates may not be doubling *this* year, but you now no longer have a 6 month grace period after you graduate. Thanks, GOP
— Will Green (@hotgazpacho) June 30, 2012
So in exchange for keeping the student loan interest rate from doubling, they took away the grace period on repayment?!?
— PhantomOfTheChakras (@RecruitZero) June 29, 2012
Congress passed a law keeping student loan interest rates low, BUT we lose our grace period. Grad students pay interest WHILE in school. UGH
— Turner G. Cōwles (@tgcowles) June 30, 2012
Recent graduates no longer have a grace period to find a job before they pay interest on their loans. Words cannot describe… #studentloan
— Tyler Ocon (@tyler_ocon) June 30, 2012
Next time, don’t screech about passing the bill before finding out what is — and isn’t — in it.