College Students And Their Troubled College Loans
This is a tough time to be a college student in America. I remember when I went to college that every semester only cost, at its highest, $2,000, which included room and board. And the loan my parents took out for me for only two years came with an interest rate of around 5%.
Now, we’re hearing that, in California, UC Berkeley is jacking up tuition rates as much as 32%, not including room and board, and other colleges are doing the same sort of thing. California is in a major budget crunch, and the state isn’t going to be able to subsidize the colleges, thus the tuition hike.
California isn’t alone in this type of thing, but their rates are much higher. Here in New Yor, the state is also having problems with its budget crunch, and the colleges are taking a hit as well, with tuition hikes projected around 15 – 16%. Other states are dealing with the same issues.
But it’s actually worse than that. Many students getting loans from the college of their choice are finding that the interest rates they’re getting hit with are as high as 18%. A class action lawsuit against Westwood College in California alleges the school lied to them on the opportunities that getting an education at their school would afford them, and that the rules for getting loans through the school wasn’t clear enough for them to understand the rate they’d be getting charged at. Though the school denies this, they’ve also dropped the rate back down to 10% for the upcoming year.