Surprise, surprise: Congress fucked up again — this time, screwing over the education of America's future! Brilliant work, team.
Because Congress was unable to reach a compromise on student loan rates by the July 1st deadline, the rates on federally subsidized Stafford loans will double from 3.4 percent to 6.8 percent. Although this won't affect current loans, if you have the misfortune of starting college this fall — so sad, too bad!
Partner this with the fact that tuition (adjusted for inflation) has increased more than 50 percent since 1999, and things begin to look pretty fucking grim. Especially since subsidized Stafford loans are based on financial need, and they don't accumulate interest while students are in college. These things are needed — so much so that the College Board found that 10.4 million students and 35 percent of all undergrads had subsidized and unsubsidized Stafford Loans in 2011-12, a 95 percent increase from 2001-02.
Oh, and here's a final depressing fun fact: Over half of all student debt is held by households whose net worth is under $8,500. Ugh.
Congress still has the chance to reverse the increase before students return in the fall, but everyone else: please enjoy the nail-biting stress while waiting to hear about your financial fate. Perhaps you can use this time to decide what l conveniences you feel like selling off so your child can get an education? You're not really using that electricity, right?