Return to Transcripts main page
CNN Live At Daybreak
Student Debt Relief
Aired May 07, 2003 - 06:17 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for some business buzz right now. Attention college grads, some student loan relief may be coming your way.
Let's go to New York and Susan Lisovicz.
And, OK, I don't think the college kids are up yet, but go for it anyway.
SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: They can always record it or use their TiVo or something like that -- Carol.
COSTELLO: Or ask their mom and dad.
LISOVICZ: Or maybe they're still up, you never know.
COSTELLO: That's true.
LISOVICZ: But, yes, that is the ultimate nice graduation present considering this tight job market. That is much lower interest rates on student loans.
According to the Public Interest Research Group, the average student loan debt has doubled over the last 10 years to nearly $17,000. This summer, the rate on federal student loans could fall below 4 percent. This, of course, could mean thousands of dollars in savings on interest for college graduates and their parents.
Interest rates on Federal Stafford Loans are recalculated every July 1 based on the short-term rates on Treasury bills at the end of May. So unless those short-term rates go up this month, which the Federal Reserve signaled is unlikely, student loan rates, Carol, will fall to about 3.4 percent from just over 4 percent. We're talking about lows that we haven't seen since the Eisenhower administration.
COSTELLO: Well that is good news for college students. They wish they were up right now.
Let's talk more about the Federal Reserve, because it kept interest rates unchanged. What else did it say?
LISOVICZ: Yes, not much of a surprise that the Fed held the key rate steady at 1.25 percent. Not much of a surprise on Wall Street. But the Fed statement warned that the economy remains in danger of further weakness. That's something of a surprise given the lower oil prices, the stock market rally and the end of the war in Iraq. So the Fed statement on the overall economy leaves open the possibilities that the Fed could cut borrowing costs even further if there's no improvement soon.
And little reaction to the Fed's announcement yesterday on Wall Street, the Dow industrials added two-thirds of a percent, the Nasdaq composite jumped 1.33 percent. They had been rallying before the announcement. Futures right now pointing to a lower open -- Carol.
COSTELLO: OK, we'll get back to you. Susan Lisovicz, many thanks.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM AT www.fdch.com
Aired May 7, 2003 - 06:17 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for some business buzz right now. Attention college grads, some student loan relief may be coming your way.
Let's go to New York and Susan Lisovicz.
And, OK, I don't think the college kids are up yet, but go for it anyway.
SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: They can always record it or use their TiVo or something like that -- Carol.
COSTELLO: Or ask their mom and dad.
LISOVICZ: Or maybe they're still up, you never know.
COSTELLO: That's true.
LISOVICZ: But, yes, that is the ultimate nice graduation present considering this tight job market. That is much lower interest rates on student loans.
According to the Public Interest Research Group, the average student loan debt has doubled over the last 10 years to nearly $17,000. This summer, the rate on federal student loans could fall below 4 percent. This, of course, could mean thousands of dollars in savings on interest for college graduates and their parents.
Interest rates on Federal Stafford Loans are recalculated every July 1 based on the short-term rates on Treasury bills at the end of May. So unless those short-term rates go up this month, which the Federal Reserve signaled is unlikely, student loan rates, Carol, will fall to about 3.4 percent from just over 4 percent. We're talking about lows that we haven't seen since the Eisenhower administration.
COSTELLO: Well that is good news for college students. They wish they were up right now.
Let's talk more about the Federal Reserve, because it kept interest rates unchanged. What else did it say?
LISOVICZ: Yes, not much of a surprise that the Fed held the key rate steady at 1.25 percent. Not much of a surprise on Wall Street. But the Fed statement warned that the economy remains in danger of further weakness. That's something of a surprise given the lower oil prices, the stock market rally and the end of the war in Iraq. So the Fed statement on the overall economy leaves open the possibilities that the Fed could cut borrowing costs even further if there's no improvement soon.
And little reaction to the Fed's announcement yesterday on Wall Street, the Dow industrials added two-thirds of a percent, the Nasdaq composite jumped 1.33 percent. They had been rallying before the announcement. Futures right now pointing to a lower open -- Carol.
COSTELLO: OK, we'll get back to you. Susan Lisovicz, many thanks.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM AT www.fdch.com
