Once again, Congress is running out of time. Interest rates on federally subsidized Stafford Loans are poised to double on Monday, July 1. Unless U.S. lawmakers come to a last-minute agreement before then — which is unlikely considering that most are taking next week off for the July 4th holiday — interest rates on new federally subsidized loans will jump from 3.4 percent to 6.8 percent.
After two years of deferring my student loans in grad school, I got a full-time job and set up a payment schedule. But I quickly found out that I wasn’t on top of my loans. I thought all my loans had been made with one lender, but I soon realized they had been moved around to different lenders and loan servicers. This is how it happened.
Is my generation greedy? Ask cash-strapped millennials what their goals are in life and they’re unlikely to say that it’s lending a helping hand. Instead, they rather just help themselves.
At least, that’s according to a recent, well-publicized study published last month in the Journal of Personality and Social Psychology. Researchers found that millennials rate “being very well-off financially” as more important and are less likely than the generations that came before them to join the Peace Corps or participate in community council meetings.
Facing 25 online personal finance journalists, President Obama got personal, giving a glimpse into his own financial history — including the money advice his grandmother gave him and why the $125,000 in student loans he and his wife Michelle racked up was a good investment.
The president was an unscheduled drop-in guest at the Personal Finance Online Summit, an event held Wednesday at the White House. During it, high-level administration economic officials gave an afternoon of on- and off-the-record briefings to an assorted group of online personal finance editors, myself included. The idea for the summit came because, presidential message adviser Stephanie Cutter said, “Americans are looking to take charge of their personal finance issues … and they’re looking to online sources to get it done.”
No major news was broken, which is why I’m writing a blog item rather than a news story, but the event had some fascinating moments, leading off with the president’s salute to his grandmother’s common-sense money advice — and why in one case it was smart to ignore it.