Higher Ed

Media Hit | Higher Ed

Local Students Feel Pinch of Loan Rate Increase

Students in our area are feeling the pinch after federal student loans doubled starting July 1. Watch online.

 

News Release | Higher Ed

Interest Rates for 105,027 Student Loan Borrowers in Maryland Double

 Due to Congressional inaction, the interest rates on federally subsidized student loans doubled on July 1 from 3.4 percent to 6.8 percent. The change will affect 105,027 students in Maryland, and in total the rate increase will hike the cost of Maryland students’ loans by $95 million. That translates into a $909 increase in debt per student, per loan.  However, because most new student loans are issued in August and September, Congress can still pass a retroactive fix. 

News Release | Higher Ed

Interest Rates for 105,027 Student Loan Borrowers in Maryland Set to Double on July 1

Baltimore, MD– Unless Congress acts, on July 1, the interest rate for 105,027 student loan borrowers in Maryland will double from 3.4 percent to 6.8 percent. According to an issue brief released today by Maryland PIRG, the rate increase would hike the cost of Maryland students’ loans by $95,469,543 million. That translates into a $909 increase in debt per student, per loan.

Resource | Higher Ed

Issue Brief: Student Loan Debt in Maryland

Student Loan Interest Rates Set to Double
Without a new plan from Congress, on July 1 the interest rate on subsidized Stafford student loans will double, from 3.4 percent to 6.8 percent. A 2007 college affordability plan lowered the rate, but expired in 2012. Last year, President Obama and Congress extended the low rate for one year.

In Maryland, 105,027 federal student loan borrowers will be impacted if the rate doubles1.

Issue | Health Care

Fighting The High Cost Rx Drugs

Brand-name drug companies have been paying off generic drug makers to delay competition and keep prices high. This widespread pay-for-delay scheme needs to be put to an end. 

Yesterday, in one of the few government buildings open for business during Hurricane Sandy, the Supreme Court heard an important case,Kirtsaeng v. John Wiley & Sons, Inc, concerning whether publishers can restrict owners of books from reselling their used legally-purchased copies. 

Students have a tool to help them avoid student loan debt: the new financial aid shopping sheet, a simple form explaining the costs, financing options, and loan options for prospective students. 

Financial aid award letters often lack transparency and wind up confusing students and parents

With student loan debt exceeding $1 trillion and families increasingly questioning whether a college education is worth it, colleges should be embracing making financial aid award letters clear and uniform. Transparency may not solve the student debt problem, but it can help students and parents make better-informed decisions.

"Congress listened to students and their families and delivered a bill that stops student loan interest rates from doubling," stated U.S. PIRG Higher Education Advocate Rich Williams. "Students already face unprecedented student loan debt and adding an additional $1,000 more would not only crunch individual borrowers, but would have further weighed down the recovering economy. We applaud Congress for coming together to pass this much-needed legislation."

News Release | Maryland PIRG Foundation | Higher Ed

BANKS SKIM MILLIONS IN FEES FROM STUDENT AID USING DEBIT-CARD-LINKED STUDENT IDS

Over 9 million students are at risk for increased educational debt, due to bank-affiliated student debit cards that come with high fees, insufficient consumer protections, and few options.  Financial institutions now have affinity partnerships with almost 900 campuses nationwide, grafting bank products onto student IDs and other campus cards to become the primary recipient of billions in federal financial aid to distribute to students.

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