The New York Timesand other publications have written on the trend of increasingly demanding degree requirements for jobs that shouldn’t need one, like receptionists, couriers, or sales agents at rental car outlets. To get a good job, you need a degree. That’s truer now than it’s ever been. Today’s high school graduates face unemployment rates of more than 8%, but people with a bachelor’s degree browse can feel more secure with a 4.5% unemployment rate. However, to get a degree, in nearly every case, you gotta pay to play.
It is comprised of the yield on the 10-year Treasury note on June 1, plus an additional 2.05%. Graduate students will have to pay 5.41% on loans this fall, or 3.6% over the 10-year Treasury, also on June 1. Related: Bill helps college students now, but future students to see rate hikes If rates on Treasury notes rise, so would student loan rates under the new deal. However, if interest rates were to spike, the bill makes provisions to cap the rates. Loans for undergraduates will be capped at 8.25% and for graduates at 9.5%. Over 10 years, the interest rates the government collects on student loans is expected to raise $715 million.
Government profits to soar more than $700 million with new student loan rates
Tim Walberg, a member of the House Higher Education Committee, also cheered the move. This is a win for students, families and taxpayers, the Tipton Republican said in a statement. But the CBO analysis shows its only a short-term win for students and families. While the CBO projects profits for the government each of the next 10 years, it shows that starting in 2016, the profit level will increase. The CBOs projections look at how much money the federal government will have to subsidize the program.