From the News You Can Use Archives 06/25/07
June News Digest
By Ian Crawford, Web Communications Editor
- Variable Student-Loan Interest Rates to Increase Slightly
- No Growth in Low-Income Students Taking out Federal Loans
- Teens, Especially Girls, are Saving for College by Working Summer Jobs
- A College Education is Necessary but What About the Cost?
Variable Student Loan Interest Rates Increase July 1
The variable interest rate on student loans originated prior to July 1, 2006, will increase by 0.08 percent starting July 1, 2007.Variable interest rates starting on July 1, 2007, are as follows:
- Stafford (in-school/grace): 6.62 percent
- Stafford (repayment): 7.22 percent
- PLUS: 8.02 percent
Rates on federal loans originated on or after July 1, 2006, remain fixed at 6.8 percent for Stafford, 7.9 percent for Direct Loan PLUS, and 8.5 percent for FFEL Program PLUS.
Federal Interest Rate Flyer
— Latest interest rates
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No Growth in Low-Income Students Taking out Federal Loans
There was no increase in the proportion of low-income dependent students taking out federal loans between 1992 and 2004. In fact, during the same period more and more students were given federal grants.These are some of the more pertinent conclusions from the report The Condition of Education 2007 by the National Center for Education Statistics.
Between 1992 and 2004:
- The percentage of low-income dependent students taking out federal loans was virtually flat at nearly 48 percent.
- The percentage of students with federal grants grew from 68 to 72 percent.
- Loan amounts as a percent of total federal aid decreased from 38 to 34 percent.
The Condition of Education 2007 — The National Center for Education Statistics
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Teens, Especially Girls, are Saving for College by Working Summer Jobs
Teenage girls are going to work this summer with college in mind. Their number one reason for giving up their long vacation is to save for college. On the other hand, teen boys are working for extra spending money first and then saving for college.These are some choice results from the 2007 Teens and Summer Jobs Interprise Poll by JA Worldwide. In a survey of teenagers, almost three-quarters (73.4 percent) said they would work this summer (although only 43.6 percent were actually employed last year). More than one-third (34.2 percent) will work in retail or restaurant jobs.
The percentage of teens who say they are working this summer to help save for college gradually increases the closer they get to enrolling.
All teens 28.9 percent Boys 24.8 percent Girls 31.8 percent 17 plus 31.6 percent 18 plus 40.9 percent 2007 Teens and Summer Jobs Interprise Poll
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A College Education is Necessary but What About the Cost?
More and more Americans believe that a college education is necessary to achieve success in the workforce. However, more and more Americans worry about the rising costs.In a News You Can Use article this month, we relayed the conclusions of a new survey reported in Squeeze Play: How Parents and the Public Look at Higher Education Today by the Public Agenda and the National Center for Public Policy and Higher Education.
Complete article: A College Education is Necessary but What About the Cost?
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Story posted June 25, 2007.
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