Interest Rate Legislation Passes
On Friday, June 29, Congress approved legislation preserving the 3.4 percent interest rate on subsidized Stafford loans for another year. The legislation went into effect July 1, 2012 and will impact subsidized loans originated between July 1, 2012 and June 30, 2013. The continued rate reduction was paid for, in part, by:
- limiting the eligibility timeline for subsidized student loans to 150 percent of the length of the studentís academic program; and
- eliminating the interest rate subsidy once the student reaches the 150 percent threshold, beginning with loans originated on or after July 1, 2012.
For additional information about July 1 changes and impacts on student aid, visit the U.S. Department of Educationís website.