Recent Student Loan Act of 2013

Higher interest rates attached to government securities are going to throw additional burdens on future college graduates. Think about borrowing money for your house at 8% interest, nobody would be buying houses and the economy would come to a standstill. However, throw an 8% interest rate on a student loan and it will fly. Why?

Apparently parents are not explaining the "Parties of Interest". Which is explained by describing the two parties of any interest transaction; i.e., there are two parties to an interest transaction. (1) Those who pay it and (2) those who understand it.

I realize it is not that simple and certain items must be purchased on interest, but really it appears that modern day parents are dropping the ball when it comes to explaining 8% on $100,000.00 over 10 years.

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About defaultprevention

Default Prevention Specialist since 1998.
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