Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Bank of America Corp (BAC), U.S. Bancorp (USB) – Stalled Student Loan Bill: Here’s How It Affects You

What you should do next
Regardless of what happens with the student loan bill impasse, the key for students and parents looking to take out student loans is to recognize that they have minimal leverage in affecting the congressional debate.

Even then, the debate doesn’t affect you if you don’t qualify for subsidized loans or if you’ve already graduated. All of the proposals affect only future loans, and the way your existing rates are calculated won’t change.

For all others, the first thing to do is to figure out what type of loans you have or are eligible for and recognize that rates on Stafford loans have historically been substantially lower than what’s available elsewhere — and even if those rates rise significantly, you’re not likely to find better deals.

Next, focus on reducing the amount you need to borrow in student loans in the first place.

Early college savings, financially savvy decisions about which college a student chooses, and looking into lower-cost alternatives on housing options and other necessary college expenses can reduce your need for student loans (and the whims of lawmakers). In particular, with tax-free accounts like 529 plans and Coverdell Education Savings accounts, parents can work to help their children avoid the difficulty of entering adulthood with a big debt burden on their shoulders before they even get their first job.

Whatever the government does with rates, the student loan bill impasse is a good reminder that taking control of your own financial destiny is the best way to handle uncertainty.

Unfortunately, those who rely on loans will end up having to accept whatever decision the government makes, with few if any alternatives to what could prove to be a tougher repayment burden for years to come.

The article Stalled Student Loan Bill: Here’s How It Affects You originally appeared on and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America and Wells Fargo.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.