8/2/13

Final Student Loan Bill Passes House

On July 31, the House of Representatives approved HR 1911, altering the interest rates for all Federal student loans first disbursed after July 1, 2013. The bill now awaits the President's signature.

Under the terms of HR 1911, interest rates would 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. Once enacted, 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%.

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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