2008 the year of financial meltdown

Never in the recent past has the world seen such a drastic failure in the financial system. Many big corporate houses have tumbled down.

What are the rippling effects of the Financial Catastrophe?

Currently the labor market in the US is seeing a heavy job loss accounting for about 419,000 jobs per month in the last quarter of 2008; it has increased from 82,000 jobs every month in first 9 months of the year. While measures have been taken by the government to curtail the cascading effects of financial disaster, irreparable losses are sure to happen. Another major area of concern had been the financial aid offered to students. The corrective measures mainly include increased loan limits for Stafford applicants and reduced interest rates on subsidized loans.

A glance at the Student Loan interest rate for the year 2008 – 2009

• The federal student loan rates are reviewed on the 1st of July every year. The rates for the year 2008 are as follows.

• Interest rates on Stafford and PLUS loans disbursed are calculated using various statutory formulas, percentage add-ons or both.
• Normally interest rates on consolidation loans are fixed in nature and are calculated based on the weighted average of the loans being consolidated rounded to the next higher 1/8 percent with a cap of 8.25%.

The rates and details are sure to help you in comparing the various loan options. With the given readymade information now you proceed hunting for the best of loan deals at the most viable prices which are manageable and affordable.