8/12/13
Obama Signs Student Loan Bill
President Obama has signed into law the Bipartisan Student Loan Certainty Act of 2013, approved by Congress in late July, which amends the direct loan interest rate section of the Higher Education Act of 1965. The new rates are now in effect and apply to all Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed after July 1, 2013.
Under the terms of the Bipartisan Student Loan Certainty Act of 2013, interest rates will be adjusted every July 1, based on the 10-year Treasury Note rate, with a cap to protect borrowers from rising interest rates. The new rates will be effective for new loans made between July 1 and June 30 of each fiscal year, and will be fixed for the life of the loan. These rates will be applied retroactively to loans that have been disbursed since July 1, 2013.
- Undergraduate Stafford Loans (subsidized and unsubsidized) will be based on the 10-year Treasury Note plus 2.05%, with a cap of 8.25%.
- Graduate Stafford Loans will be based on the 10-year Treasury Note plus 3.60%, with a cap of 9.50%.
- PLUS Loans (for graduate students and parents) will be based on the 10-year Treasury Note plus 4.60%, with a cap of 10.50%.
More information about the act, including links to previous announcements, can be found in the U.S. Department of Education's electronic announcement.
Mary Heid
Director for Default Prevention, Compliance & Training Services
OCAP Communications
P.O. Box 3000
Oklahoma City, OK 73101-3000
Communications@ocap.org
www.ocap.org