There is one issue I follow every year like a hawk and it comes around July 1st, the interest rate Congress decides to screw me with for my student loans. Due to Congresses failure to pass student financial aid reform, at least it is a contributing factor, I have formulated a plan to graduate early. Unfortunately, it is costing me more than a pretty penny.
I just paid $400 on credit cards that maintain a 0% balance, but a credit card nonetheless, so I can graduate early. My University decided to inform me late that I need 100 units to apply for graduation, but I had only budgeted 7 units for this summer… which by the way costs $360 per unit. Barely any federal aid exists for summer courses because how dare students attempt to use four months of time to get ahead. So I am being forced to pay out of pocket an extra thousand dollars that I did not plan, thus the bootstrapping comes into play.
The interest rate on private loans is now an entire point lower than federal subsidized loans, though that is expected to change by mid-August if the deal the Senate reached today actually can be passed by the Republican controlled House of Representatives. Interest rates on unsubsidized loans and PLUS loans are expected to be even higher, making private fixed-rate loans a viable option.
So there you have it, I am forced to bootstrap my education near the end because I don’t come from a wealthy family and because Congress has decided to screw students.