SoFi Blog

The term “sequester” may seem so 2013, but the truth is that these automatic spending cuts are still in play – and the next round is scheduled for October 1^st.  Whether you’re currently financing an MBA or other grad school program with Direct PLUS loans or you’re considering using them in the future, these new sequester cuts may have an impact on the amount of money you’ll end up spending on your loans.

So what exactly do you need to know about student loans and the sequester?  Here’s the scoop:

What comes to mind when you think of student loans?  If you’re one of the 37 million people that are currently repaying student debt, your first thought is probably of the painful deduction that comes out of your bank account each month.  Or maybe you picture someone you know who’s currently struggling with his or her loans.  Or you recall an article you saw about the “student loan crisis.”

As CEO of a company that’s working to revolutionize the student loan industry, I have to say the past couple of weeks have been interesting to watch.

President Obama’s much-debated plan to increase college affordability has stoked the fires of an already heated national dialogue about the rising cost of higher education. I applaud the President for addressing this issue, and I’m pleased that this event is bringing the conversation to the forefront.  However, I still think there are some fundamental flaws in the plan.

There is a lot of debate going on these days about overhauling student loans.  Here’s a high-level summary of our view: