Students feel burn of sequester cuts in fee hikes on federal loans

Paying for College
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<p>“Both graduate students and the parents of undergrads have been quietly receiving letters from the federal Department of Education. The letters say the fees on their Direct PLUS loans from the government are being raised as a direct result of the automatic budget cuts that kicked in this month because Congress and the White House couldn’t come to a fiscal agreement.” …</p>

<p>[Students</a> feel burn of sequester cuts in fee hikes on federal loans | Fox News](<a href=“http://www.foxnews.com/politics/2013/03/15/students-feel-burn-sequester-cuts-in-fee-hikes-on-federal-loans/]Students”>Students feel burn of sequester cuts in fee hikes, despite inaction on fraud | Fox News)</p>

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<p>from the article … to help size the increase … </p>

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<p>$20 increase on a $10K loan, one time payment. Puh.</p>

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<p>PLUS is a trap! See [The</a> Parent Loan Trap - Students - The Chronicle of Higher Education](<a href=“The Parent Loan Trap”>The Parent Loan Trap)</p>

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<p>In true form, this is all effective March 1 … and the federal system is not set up to process loans with the new fees. Aid offices have been told to process using the old fees & the feds will contact students regarding how the new fees will be handled. And this is for the remainder of the fiscal year … so part-way through the new school year, they may change again.</p>

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<p>wow the link above really shows the insane borrowing since 2008</p>