On Friday, August 9th, President Obama signed the Bipartisan Student Loan Certainty Act of 2013 into law! This new bill restores lower interest rates for student loans, and it is just the first step in Obama's plan to control the cost of a college education in the United States. All federal loans, including Undergraduate Subsidized Stafford Loans, Undergraduate Unsubsidized Stafford Loans, Graduate Unsubsidized Stafford Loans, and the Parent and Graduate PLUS loans have been affected by this new bill.
Here is everything you need to know about the Federal Direct Student Loans for the 2013-2014 school year...
As you can see from the information provided above, these new rates are a tremendous improvement of the past interest rates for these loans. In addition to these new rates, President Obama has also included an interest rate cap of 8.25% for Undergraduate Direct Subsidized and Unsubsidized Stafford Loans, 9.50% for Graduate Direct Unsubsidized Stafford Loans, and 10.50% for Parent and Graduate Direct PLUS Loans. This cap will limit any future fixed interest rates from exceeding 8.25%. The Bipartisan Student Loan Certainty Act of 2013 is a huge cause for celebration and Savvy Student is sure you are just excited about this wonderful new development as we are!
Happy borrowing!
~ Savvy Student
Here is everything you need to know about the Federal Direct Student Loans for the 2013-2014 school year...
- Undergraduate Direct Subsidized Stafford Loan
2013-2014 Fixed Interest Rate: 3.86%
*The rate was previously 3.4%
- Undergraduate Direct Unsubsidized Stafford Loan
2013- 2014 Fixed Interest Rate: 3.86%
*The rate was previously 6.8%
- Graduate Direct Unsubsidized Stafford Loan
2013-2014 Fixed Interest Rate: 5.41%
*The rate was previously 6.8%
- Parent and Graduate Direct PLUS Loan
2013-2014 Fixed Interest Rate: 6.41%
*The rate was previously 7.9%
As you can see from the information provided above, these new rates are a tremendous improvement of the past interest rates for these loans. In addition to these new rates, President Obama has also included an interest rate cap of 8.25% for Undergraduate Direct Subsidized and Unsubsidized Stafford Loans, 9.50% for Graduate Direct Unsubsidized Stafford Loans, and 10.50% for Parent and Graduate Direct PLUS Loans. This cap will limit any future fixed interest rates from exceeding 8.25%. The Bipartisan Student Loan Certainty Act of 2013 is a huge cause for celebration and Savvy Student is sure you are just excited about this wonderful new development as we are!
Happy borrowing!
~ Savvy Student
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