New Interest Rates for New Loans

It is now official.  The back and forth regarding the student loan interest rates has been determined and passed by Congress.  The President has signed the Bipartisan Student Loan Certainty Act of 2013.  Under this act, federal student loan interest rates are tied to financial markets.  Which means what, exactly?  Meaning, interest rates will be determined each June for new loans being made for the upcoming award year.  Award years run from July 1st to the following June 30th.  Each new loan will have a fixed interest rate, for the entire life of the loan.

Any new Direct Loan awarded between on or after July 1, 2013 and before July 1, 2014, will have the following interest rates:

Loan

Interest Rate

Direct Subsidized Stafford Loan (undergraduate)

3.86%

Direct Unsubsidized Stafford Loan (undergraduate)

3.86%

Direct Unsubsidized Stafford Loan (graduate)

5.41%

Direct PLUS Loans (parents or graduate)

6.41%

These rates will apply to all new Direct Loans made during this time, even for loans that have already disbursed before the passage of the Bipartisan Student Loan Certainty Act of 2013.

Learn more about from the Department of Education at http://studentaid.ed.gov/About/announcements/interest-rate.

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