Montemurro: Trade talk swirls during All-Star break
TUESDAY, JULY 16, 2013
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CL Cardinals soak in atmosphere in loss to Team USA
County rakes in travel dollars in 2012 Business, B4
Dyland Cysewski
Interest is high on cost of college debate
Franks, Tryon have differing expectations But both push for ousted Metra CEO to face House committee By SHAWN SHINNEMAN sshinneman@shawmedia.com
Sarah Nader – snader@shawmedia; illustration by Kristina Peters – kpeters@shawmedia.com
Rates are excessive on all student loans, financial aid experts say By STEPHEN Di BENEDETTO sdibenedetto@shawmedia.com Congress should use the ongoing debate over student loan interest rates and develop a long-term solution that would keep lending costs low for every student, area financial aid experts said. Interest rates on subsidized student loans in the federal government’s direct lending program doubled July 1 from 3.4 percent to 6.8 percent, exceeding current market rates. The issue already has forced area student financial aid offices and credit counselors in a difficult position with their students. On one side, a 6.8 interest rate on loans meant to help low-income students manage the increasing costs of higher education only will add to their financial hardship. On the other side, the interest rate increase applies to only new subsidized loans issued after July 1, giving Congress time to rectify the issue
before college students head back for the fall term and start receiving aid. The government also pays the interest rates on subsidized loans, which represents a quarter of all federal student borrowing, while a student is in college and maintains part-time status. At Northern Illinois University, most incoming freshmen who will receive subsidized loans for the first time won’t feel the effects of higher interest rates until graduation four years from now, said Rebecca Babel, the university’s student financial aid director. “It is a very high interest rate and a very high cost, but it’s overblown in that people are interpreting that this affects all students’ loans and that this is the tipping point that makes college unaffordable,” Babel said. Since 2010, the federal government has been in the student lending business, providing various forms
About direct federal student loans
Tony Caruso
Colin Caruso
Lathan Goumas – lgoumas@shawmedia.com
See METRA, page A4
State Attorney General Lisa Madigan won’t challenge Gov. Pat Quinn in next year’s Democratic primary.
The Associated Press
Source: The Congressional Budget Office and the American Student Assistance
Voice your opinion How long did it take you to pay off your student loans? Vote online at NWHerald.com.
GRAFTON TOWNSHIP
Metra Board laid out allegations that he was pushed out for resisting political pressure to make certain personnel and contract decisions. Tryon, the Republican spokesman for the Mass Transit Committee, called a previous hearing before the memo was released “very sterile” compared with details in Clifford’s memorandum.
By SOPHIA TAREEN
It is a very high interest rate and a very high cost, but it’s overblown in that people are interpreting that this affects all students loans and that this is the tipping point that makes college unaffordable.
LOCALLY SPEAKING
State Rep. Jack Franks D-Marengo
Cites father’s role, to seek re-election
See LOANS, page A4
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State Rep. Mike Tryon R-Crystal Lake
Madigan passes on governor’s race
The nuances of the federal direct student loan program: n Subsidized loans represent 26 percent of all federal student borrowing and available only to low-income undergraduates who maintain parttime status (interest rate went from 3.4 percent to 6.8 percent on July 1). n Unsubsidized loans represent 56 percent of all federal borrowing and available to both undergraduates and graduates regardless of financial need (interest rate fixed at 6.8 percent before July 1). n PLUS loans represent 18 percent of all federal borrowing and available to dependent students and graduate students who have borrowed to the limit on other financial aid (interest rate fixed at 7.9 percent before July 1).
Rebecca Babel, Northern Illinois University’s student financial aid director
A couple of local lawmakers are leading a charge to put Alex Clifford in front of the House Mass Transit Committee, but they don’t quite see eye to eye when it comes to whether continuing the investigation will validate or disprove some of the ousted Metra CEO’s allegations. Meanwhile, officials said Monday that Clifford will appear before the Regional Transportation Authority on Wednesday. State Reps. Mike Tryon, R-Crystal Lake, and Jack Franks, D-Marengo, have been outspoken about wanting to hear from Clifford, whose April 3 memo – written before his firing – to the
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CHICAGO – Illinois Attorney General Lisa Madigan ended months of speculation over her political future Monday with the surprise announcement that she won’t challenge Gov. Pat Quinn in 2014, saying she would never run for governor while her father is speaker of the Illinois House. Madigan, who has raised millions of dollars but remained coy about her plans, said she had contemplated a run out of frustration about the state’s lack of progress on key issues. But she said it wasn’t feasible while her father, Michael Madigan – arguably the most powerful politician in the state – remained speaker, a position he’s held for 28 of his 42 years in the House. “I feel strongly that the state would not be well served by having a Governor and Speaker of the
CRYSTAL LAKE
OFFICIALS LOOK TO RENTAL DEAL FOR BUS
TEEN MAKES NATIONAL SELECT HOCKEY TEAM
Grafton Township has asked Pace for help replacing the aging bus used for the township’s bus service while officials examine ways to fix Grafton’s financial woes. The move was needed after the township spent $5,000 alone last month to repair and maintain the 6-year-old bus that transports seniors and disabled residents. For more, see page B1.
A Crystal Lake teen has been named to USA Hockey’s Under-17 team, which will travel to the Five Nations Tournament in mid-August in Trnava, Slovakia. Tory Dello, who attended Crystal Lake Central until he signed with the United States Hockey League’s Tri-City Storm in January, is one of six defensemen on the U.S. roster. For more, see page C1.
McHENRY: Fiesta Days provides plenty of family fun in McHenry through Sunday. Local, B2
Inside State Sen. Kirk Dillard, R-Hinsdale, kicks off run for governor in Chicago. PAGE A3 House from the same family and have never planned to run for Governor if that would be the case,” she said in a statement. “With Speaker Madigan planning to continue in office, I will not run for Governor.” For months, Lisa Madigan gave no hint about her plans, even brushing off reporters inquiring about her future at an event earlier Monday. Hours later, she announced in an emailed
See MADIGAN, page A4
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