How much will it cost you going forward to take out a SUBSIDIZED Stafford Loan to pay for college? I do the numbers for you here.

Here is a side by side comparison of the difference in the monthly payment a SUBSIDIZED Federal Stafford Loan will be on July 1st, 2013 when the current law regulating the rates expires. The interest rate on this type of loan is schedule to double from 3.4% to 6.8%.This is on loans going forward NOT retroactive on previous loans you may have taken out. I chose a 10 year payback----could be longer BUT DON'T!!  Lots of consternation about this change.  Thought I would bring a little perspective to the discussion.

The maximum a student can borrow in subsidized Stafford loans is $23,000 (for an undergraduate).  This will represent only a portion of total college costs.  My understanding is the average college student does not borrow up to the limit on this type of loan, so the amount is likely to be less.  The rest will be in grants, scholarships, own money AND NON-subsidized Stafford/"other" loans.  The rate on non-subsidized Stafford loans is already 6.4% and is NOT scheduled to change.

How you will be affected in the future depends on how deep into the subsidized loans you are in.  However, the financial impact will not be devastating, as reported in the media, and will be a negligible blow to your future standard of living.

You may feel different. I am open to be convinced otherwise.

(Calculator I used HERE)