Why they huge increase? Is it Obama?
Frankly, yes! But in defense of the direct program, it has some benefits as well. Income based repayment plans, loan forgiveness for 10 yrs public service, 26 months (I think) defferment time per loan (available whenever the borrower wants to use it), a consolidated payment, etc...
Otherwise, you are correct. The rate was much lower when loans were available via private, as opposed to the new Direct program. Why? No clue.
FWIW, I essentially have two mortgages. One at 3.25%, and the other at 6.25%. Wanna take a guess which is which?
This post was edited on 11/20 at 10:46 am