FAP544: New student loan rates set, Latinos and financial aid, military student loans, Sophia Ramos

Student Financial Aid News
+ From BankNet360: Iowa Student Loan Liquidity Corp. will not charge military personnel interest on loans while they are deployed, the West Des Moines, Iowa-based nonprofit announced. Troops can receive the break for up to two years. Iowa Student Loan Liquidity has 347 employees, and holds $2.45 billion of loans made to 214,000 borrowers.
+ From Inside HIgher Ed: Latinos, on average, receive less federal aid for college than any other ethnic or racial group. But pinning down why that is — especially when more Latinos than average apply for financial aid — is like deciding which came first, the chicken or the egg.
+ That’s what some of the analysts at a policy session on Tuesday likened the problem to. The briefing, a forum for House of Representatives legislative staff and experts, focused on the particular realities that face Latino students seeking to attend — and pay for — college.
+ Are Latinos more likely to attend two-year community colleges and four-year public universities than average because they get less financial aid? Or do they get less financial aid because the tuition at such institutions is lower?
+ The answer would have a significant policy impact, and the panelists seemed to lean toward the latter — that Latinos gravitate toward institutions that require less financial aid.
+ One thing not mentioned strongly: in talking with folks at MCGS and online like last year’s interview with Sophia Ramos, there’s a strong cultural bias against lending in Hispanic and Latino communities

Scholarship Update
+ The Hispanic Scholarship Fund Network
+ $195 million in scholarships – two year, four year, transfer, you name it
+ Details at our free college scholarship search site

Interest Rate Update
+ Interest rates set! 4.919%, an increase of 7.6 basis points over last year.
+ Last week: 4.914%
+ Rates will be set beginning July 1, 2007 for Stafford and PLUS loans prior to July 1, 2006:
+ Stafford federal student loans in grace: 6.619%
+ Stafford federal student loans in repayment: 7.219%
+ PLUS parent student loans: 8.019%
+ Today’s current rates:
+ Stafford federal student loans in grace: 6.543%
+ Stafford federal student loans in repayment: 7.143%
+ PLUS parent student loans: 7.943%
+ Stafford federal student loans after July 1, 2006: 6.8%
+ PLUS parent student loans after July 1, 2006: 8.5%
+ Year over year difference of 7.6 basis points
+ To consolidate your federal student loans, visit www.StudentLoanConsolidator.com
+ Full disclosure: consolidating now or later may not change your consolidated interest rate because it’s rounded up to the next nearest 1/8th of a percentage
+ Beware of consolidation marketing from less scrupulous lenders screaming warnings at you that rates are going up – yes they are, but not by much, and consolidating may not save you all that much – do your research before jumping into a student loan consolidation
+ Run the numbers yourself – use our calculator at StudentLoanConsolidator.com

Podsafe Music
+ Sophia Ramos, Esperanza
+ Music via the Podsafe Music Network

Reminders

+ Private student loans
+ Stafford loans | Other federal student loans
+ Student loan consolidation at StudentLoanConsolidator.com
+ FAFSA tutorials and free help
+ Financial Aid Podcast Show Notes at FinancialAidNews.com.
+ The Financial Aid Podcast is a publication of the Student Loan Network.

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