Note of importance regarding new student loans: According to Bloomberg news, if Congress does not act by July 1st, all new student loans will carry an interest rate of 6.8 percent versus the existing rate of 3.4 percent. For all those entering the student loan market this fall plan accordingly, for what looks like an average increase in cost of $1000.00. Now is the time to look at your budget and figure out where you can find the extra expense associated with this possible rise in interest rate. Remember for most borrowers, those costs will not be incurred until you begin paying on your college loan, which are 6 months after graduation from a accredited educational institution. The cost associated with a rise in interest rate will though have an impact on your budget in time, because all borrowing is nothing more then bringing income forward today to spend on something you will have to pay for with tomorrows work, thus forgoing spending on something else you may desire. As the saying goes, there is no such thing as a free lunch.
