Interest Rates See Subtle Increase

University of Texas at El Paso DigitalCommons@UTEP The rP ospector Special Collections Department 8-27-2013 The rP ospector, August 27, 2013 UTEP Student Publications Follow this and additional works at: http://digitalcommons.utep.edu/prospector Part of the Journalism Studies Commons, and the Mass Communication Commons Comments: This file is rather large, with many images, so it may take a few minutes to download. Please be patient. Recommended Citation UTEP Student Publications, "The rP ospector, August 27, 2013" (2013). The Prospector. Paper 148. http://digitalcommons.utep.edu/prospector/148 This Article is brought to you for free and open access by the Special Collections Department at DigitalCommons@UTEP. It has been accepted for inclusion in The rP ospector by an authorized administrator of DigitalCommons@UTEP. For more information, please contact [email protected]. V O L . 9 9 , n O . 1 the university of texas at el paso August 27, 2013 By S. DaviD RamiRez the U.S., have seen a subdued uptick in Kilo and the dew growth, which may ultimately increase ENT. 9 The Prospector the value of the Treasury notes. Interest rates on federal student “Being tied the way it is, those rates loans will increase only a fraction de- #thestruggle spite legislative inaction in early July could go up for new borrowers next and the threat of a dramatic increase. year,” Westman said. “We’ll have to “Nobody’s comfortable paying for keep an eye on that.” Interest rates see interest, but I’m just so glad it didn’t The Treasury note’s value changes as jump that much,” said Diego Romero, the economy fluctuates. As economic junior graphic design major. “It is situations improve, the value of those something I always take into consider- subtle Increase ation whenever I’m taking out a loan.” notes will have a related increase. If The newly signed Bipartisan Student the interest rate hits its cap, UTEP Loan Certainty Act will increase the students could expect to pay an addi- T h e interest rate on Stafford loans from tional $40 per month after graduation. 3.4 to 3.86 percent, rather than the 6.8 “It sounds good as long as the econ- percent Congress anticipated in June. “They did end up tying that rate to omy stays in a slump,” said Alex Areni- CFPB the Treasury note (rates), but they put var, senior criminal justice major. “The CONSUMER FINANCIAL PROTECTION BUREAU caps on the loans,” said Craig West- economy may stay like this for a while, man, associate vice-president for stu- so it would be good in the short term.” Estimates that dent solutions and outcomes. With the Department of Education Treasury notes are a type of security reporting that student loans are now a sun city dance team bond that individuals can purchase outstanding ENT. 10 from the federal government. Notes trillion-dollar industry, the impact on debt is approaching are bought at a specific price and in- a national scale could be significant. terest rate, then mature two to 10 years Despite this, the new cohort of stu- later. As the bonds mature, they pay dents coming in for the fall have ex- $1.2 out to their owners. This way, citizens pressed few concerns to financial aid can invest and try to capitalize on the staff, Westman said. TRILLION success of their own government. The interest rates are usually an- Westman said that a majority of the as of May 2013 nounced for these securities in July. calls fielded by the admissions and It is this announcement that will financial aid offices were from con- set the interest rate for educational cerned parents. STUDENT LOAN DEBT HAS GROWn 20% loan disbursement. Students are not required to check According to the bill, undergradu- their financial aid loan packages. The FROM THE END oF 2011 TO MAY 2013 ate loan interest rates will mirror the announced interest rate plus an ad- changes are automatically made by the ditional 2.05 percent, but future rates government and then awarded by UTEP. MORE THAN 60% will not exceed 8.25 percent. So far, there has not been a notice- oF UTEP STUDENTS RECEIVE FINANCIAL aId The legislation also aims to increase able change in the number of students transparency within the Department of taking out loans for school. However, Education. The Secretary of Education with interest rates fluctuating in the will convene an advisory committee on UNDERGRADUATE Improving Postsecondary Education future, student trends in loan accep- Data to study practices and techniques tance may change. rate calculatIon neW stanFord loan rates RATE CAP soccer treasurY note +2.05 3.86% 8.25% spOrts 13 for improving educational transpar- Institutional research has shown that ency in the federal government. UTEP students prefer to pay-as-they- Graduate students will experience go rather than taking on student loans. GRADUATE higher rates on their loans at the base “It is an investment in your future,” rate calculatIon neW stanFord loan rates RATE CAP rate of the Treasury note plus an ad- treasurY note +3.6 5.41% 9.50% ditional 3.6 percent. Interest rates for Westman said. “Take your loans, fin- federal-subsidized graduate Stafford ish school, go out, get jobs.” loans are capped at 9.5 percent. Students may contact the UTEP Of- PARENTS Although a major increase was fice of Student Financial Aid at 915-747- rate calculatIon neW stanFord loan rates RATE CAP avoided, there is still the potential for 5204 or by email at [email protected]. treasurY note +2.05 6.41% 10.50% higher rates. According to economic forecasting by the International Mone- S. David Ramirez may be reached at theprospectordaily. tary Fund, global economies, including [email protected]. academics Women’s studIes major approved By amanDa Guillen The Prospector Women’s and gender studies is now volleyball on the list of 71 majors students can “We want people spOrts 14 choose from. The Texas Higher Education Coordi- to see beyond what nating Board approved UTEP’s request of offering a Bachelor of Arts in Women’s others may have and Gender Studies on July 31 after not- ing it’s popularity at other universities. assumed.” The major is not yet offcially available, but Brenda Risch, director of the - Adrian Chavez, Women’s Studies Program, said the senior psychology major major will be guaranteed to students in the Fall 2013 semester. Some students are looking forward to changing their major. “There are a lot of students that have this major,” said Sarah Walker, senior expressed how displeased they were English and American literature major that they could only take 18 hours in FLOR FLORES / The Prospector and lead intern at the Women’s Studies women’s studies because all we had major Edith Mejia glances through the Women’s Program. She plans to change her ma- senior electrical engineering was a minor, and because of this dis- Studies website although the degree is not yet available to students. jor when it becomes available. pleasure there was also a big call for see MAJOr on page 4 PAGe 2 August 27, 2013 editor-in-chief perspectives Jasmine aGuilera, 747-7477 ThE Prospector top row (left to right): Jasmine Aguilera, editor-in-chief; Diego Burciaga, layout editor; Kristopher Rivera, copy editor; Edwin Delgado, sports editor. Bottom row (left to right): Lorain Watters, assistant news editor; Andrea Acosta, entertaintment editor; Michele Isabella Torres, multimedia/online editor; Veronica Enriquez, photo editor. editorial the prospector daily welcomes you By EditoRial staff But would you really rather live in a finally decided that the face of the are facing a poor job market, rising Our staff is made up of students world without freedom of representa- student newspaper would change student costs and an increasingly par- with diverse experience at different The Prospector tion, expression and press? along with the rest of campus. tisan Congress that affects our lives in publications. Some have interned as Journalism has developed a bad It has been said that journalists are Although we celebrate our 100th more ways than it may seem. reporters outside of the Prospector, a dying breed, but we argue other- birthday in 2015, the staff has decid- reputation these days. Despite every change, The Prospec- such as the Scripps Howard Founda- wise, we are an adaptive breed. ed to change in time for the centen- Publications are in debt and losing tor is and always will be the assayer tion Wire in Washington, D.C., the Where before news was solely dis- nial celebration. Sacramento Bee in Sacramento, Calif. money, newspaper reporters are get- of student opinion. Everything we re- tributed in hard copy, now it can be Before we published two newspa- port is for the betterment of the stu- and local publications like The Art ting laid off or put on furlough, some delivered instantaneously in a tweet. pers a week with some activity online. dent population. Avenue. Photographers at the Pros- people are going so far as to say that News is now more than a talking head Now we will work to produce daily Sometimes that makes us unpopu- pector have had the opportunity to journalists are useless. on TV, it’s an interactive experience content on our new website, thepro- practice photography abroad. for those who seek it out online. spectordaily.com, which will include lar amongst officials, but it is our job A study by the Pew Research Cen- to inform you. We are dedicated to delivering ter published in July showed that 27 Journalism is not dead, it’s evolving, countless bits of multimedia extras.

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