Why is the interest rate on subsidized Stafford loans expected to double?

[S0S]

AP (http://www.google.com/hostednews/ap/article/ALeqM5g87zl8C2O12KKLUbmhqT0JdYnC4A?docId=158633047 edc4af08c09f6aa90e01fae)

Q: Why is the interest rate on subsidized Stafford loans expected to double?

A: Acting on a Democratic campaign promise in 2006, Democrats in 2007 crafted the law to progressively lower the interest rate from 6.8 percent to the 3.4 percent rate — where it is this school year — and then return to the original 6.8 percent in 2012. Republican President George W. Bush signed the deal into law after it was approved by bipartisan but Democratic-heavy majorities in both chambers. Congress wrote the law this way for one simple reason, says Jason Delisle, director of the federal education budget project at the New America Foundation: cost. It would cost an additional $6 billion annually to keep the interest rate at 3.4 percent.

:bye:

[cougarjake13]

So is this for new loans or including all loans in the past

[StanUpshaw]

So is this for new loans or including all loans in the past

Q: Are there people who aren't affected by the rate increase?
A: Students issued loans before July 1 won't be hit with the higher rate. It also doesn't affect the interest rates on unsubsidized Stafford loans (now at 6.8 percent) and PLUS loans for parents (now at 7.9 percent). Unlike subsidized Stafford loans, unsubsidized Stafford loans are not based on financial need.

[WRESTLINGFAN]

There he was yesterday, trying to feed off the fears of the college students, as always injecting himself in the conversation that he paid his loans back 8 years ago.

Meanwhile when the bill was passed in 2007 lowering the rates, then Senator Obama didnt even show up to vote. Not even present. He was out campaigning,

Can he ever be straight with the people on anything?

[Chigworthy]

I thought I might google what a Stafford Loan is, but I didn't. I had a baked potato instead.