Senate Tying Interest Rates to Markets-How Safe is Your Loan?

The Senate has approved a bipartisan plan that ties interest rates for student loans to the financial markets. The Senate voted 81 to 18 and it drew overwhelming support from Republicans while 17 Democrats voted no.

Some liberals are arguing that the new plan leaves out lower and middle income students who are vulnerable to the swings in the market. The plan helps maintain low interest rates in the short term but higher interest rates in the long term if the economy does recover.

Loans to undergraduates and graduate students and their parents under the plus program would be subject to a fixed rate tied to the 10 year treasury note, specifically the yield on the 10 year note as determined by the last auction held before each June. Liberal critics said that while interest rates are low now, economy forecasters are predicting a rise in interest rates considerably.

This really begs the question, should we be tying student loans into the financial markets given the instability of the current financial system? Are our student loan programs really safe if they're tied to the markets or is this a last-ditch effort to consolidate everything into a financial system that is bound to collapse in the next decade?

According to the Obama administration they have estimated that the fix would help 11 million borrowers who will take out loans this year. The new rates would apply to people who had only taken loans since July 1 of this year.

Do you have a student or family member who is going to be affected by these great changes? If so I decided to give you some links to read up on the new Senate approved student loan plan and you can read those links below.

“Congress has trouble with deadlines. I think we all know that,” said Senator Joe Manchin III, Democrat of West Virginia, who helped broker the deal. “We’re here today trying to fix the problem we have with the government’s student loan programs because we kicked the can down the road last year.”

Obama at Knox College: 'Washington has taken its eye off the ball' - Washington Post

Follow these simple steps to determine the return on investment for your college future. It's a simple ROI calculator for anything related to investing including college: How to calculate ROI

Senate Approves College Student Loan Plan Tying Rates to Markets - New York Times

Ask Matt: College costs can add up fast - USA TODAY

More Evidence That Colleges Are Giving Money to Those Who Need It Least - Businessweek
Via CollegeROI Blog

Senate Tying Interest Rates to Markets-How Safe is Your Loan?

The Senate has approved a bipartisan plan that ties interest rates for student loans to the financial markets. The Senate voted 81 to 18 and it drew overwhelming support from Republicans while 17 Democrats voted no.

Some liberals are arguing that the new plan leaves out lower and middle income students who are vulnerable to the swings in the market. The plan helps maintain low interest rates in the short term but higher interest rates in the long term if the economy does recover.

Loans to undergraduates and graduate students and their parents under the plus program would be subject to a fixed rate tied to the 10 year treasury note, specifically the yield on the 10 year note as determined by the last auction held before each June. Liberal critics said that while interest rates are low now, economy forecasters are predicting a rise in interest rates considerably.

This really begs the question, should we be tying student loans into the financial markets given the instability of the current financial system? Are our student loan programs really safe if they're tied to the markets or is this a last-ditch effort to consolidate everything into a financial system that is bound to collapse in the next decade?

According to the Obama administration they have estimated that the fix would help 11 million borrowers who will take out loans this year. The new rates would apply to people who had only taken loans since July 1 of this year.

Do you have a student or family member who is going to be affected by these great changes? If so I decided to give you some links to read up on the new Senate approved student loan plan and you can read those links below.

“Congress has trouble with deadlines. I think we all know that,” said Senator Joe Manchin III, Democrat of West Virginia, who helped broker the deal. “We’re here today trying to fix the problem we have with the government’s student loan programs because we kicked the can down the road last year.”

Obama at Knox College: 'Washington has taken its eye off the ball' - Washington Post

Follow these simple steps to determine the return on investment for your college future. It's a simple ROI calculator for anything related to investing including college: How to calculate ROI

Senate Approves College Student Loan Plan Tying Rates to Markets - New York Times

Ask Matt: College costs can add up fast - USA TODAY

More Evidence That Colleges Are Giving Money to Those Who Need It Least - Businessweek
Via CollegeROI Blog

Can We Really Trust The Recent Rise in Gold Prices?

Federal Reserve Chairman Ben Bernanke told lawmakers today that a decision to taper the pace of its stimulus program the week in dollars for recovery won't mark the arrival of a tighter monetary policy. But what does all this mean for gold prices today the gold and the dollar attended trade inversely with each other especially in terms of loose monetary policy.

It looks like gold prices have gone up today after looking at the Comex division of the New York Mercantile exchange gold futures for August delivery were up half a percent at now $1200 a troy ounce in US trading on Thursday.

According to investing.com Ben Bernanke had told US lawmakers today at an annual or semi-annual Congressional testimony that this stimulus program will remain in place for the foreseeable future. So for all those that are wondering if the economy is going to recover or going into this recession than we have a few months or even a few years to wait to see what happens. You can read the full article at the link below.

Bernanke told U.S. lawmakers in his semi-annual congressional testimony earlier that stimulus programs will remain in place for the foreseeable future though they may begin to wind down later this year if the economy improves.

ᔥGold gains as Bernanke reassures market tightening not on horizon

you may recall earlier in the year April 2013 the gold prices took a major dip in price going from about $1800 to around $1200 and some and analysts have actually predicted gold prices fall even further but today we have a huge comeback for gold's price and daily finance.com is talked about why prices may have even higher.

as of today July 23, 2013 the price of gold has surged up 13% which happens be its biggest gain in more than a year going up from June's low of $1200 as recent signals from United States Central Bank of continued money printing hold down the value of the dollar and the recently depressed price parks in the Asian bargain hunting market.

Gold bounced back may continue to vindicate the small number of bullish forecasters still keeping faith with the precious metal or the slide that began in late October could resume which could vindicate the many sell side analyst working for giant investment banks who are happy to see gold get what they see as well deserved changes in price.

 

Here's what's happened. From its Oct. 4, 2012, price of $1,804.50 per troy ounce the gold price had, by June 28, fallen to $1,180, a more than one-third plunge in its value. Investors in such popular exchange-traded funds as SPDR Gold Trust andiShares Gold Trust couldn't exit quickly enough. But since June 28, the price of gold has been clawing its way back, and Monday in New York trading it climbed to $1,336.10, a 13 percent gain.


ᔥGold's Comeback: Why Prices May Head Even Higher - DailyFinance

according to Money morning website gold prices have gone up as well and some are comparing this rising gold price to the 2008 era we have the 2008 financial crisis. The physical demand for gold is far outweighing the physical supply of coal. You may recall a few months ago and throughout 2012 that a lot of countries were hoarding gold even the federal reserves in different areas of the world. It seems that there is a lot of people hoarding gold people that own goat or just keeping it there's been a lot of speculation as to whether gold prices will be impacted by that and according to this recent article below you'll read that this is one of the reasons the gold went up in value today.This means the physical demand for gold is far outweighing the physical supply of gold.

Economist Guillermo Barba explained to Reuters, “More and more people want their gold today, at a higher price, no matter that they can buy a future much cheaper.”

Just ask JPMorgan Chase (NYSE: JPM) about that.

ZeroHedgereported last week that 90,311 ounces of the bank's eligible gold was withdrawn in one day. This translates to 66% of the bank's non-registered gold, leaving it with only 46,000 ounces of such gold in its vaults. 


ᔥWhy Gold Prices Are Rising Now - Money Morning

hopefully this gives you some good insights into the price of gold and where the future lies for gold in terms of price and availability as well as where the current financial situation exists and whether or not we're heading into another financial crisis. Thank you for reading.