Student Loan Changes


Since July 1, 2006, Congress has dictated what student loan interest rates would be.  With the passage of HR-911 “Bipartisan Student Loan Certainty Act of 2013” a formula has been developed to calculate these interest rates each year.

The bill has the following provisions: [red_tick_list width=”100%”]

  • Each year interest rates will be re-calculated based on the 10 year Treasury Note plus a percentage.
  • Once that rate is determined, the loan interest rate will be fixed for the life of the loan
  • This bill’s effective date is July 1, 2013.
  • Loans disbursed after July 1, 2013, will use this new method for calculating interest rates
  • Each type of federal loan has an interest cap on it.

Federal interest rates for the 2013-2014 academic year (July 1, 2013 to June 30, 2014):

STAFFORD LOANS for Undergraduate Students                                      3.86%
(Subsidized and Unsubsidized)

STAFFORD LOANS for Graduate Students                                                5.41%

PLUS LOANS for Parents and GRAD PLUS LOANS                                6.41%
(for Graduate Students)

The cap on interest rates for each type of federal loan is as follows:

STAFFORD LOANS – Undergraduate Students                                         8.25%

STAFFORD LOANS – Graduate Students                                                   9.5%

PLUS LOANS and GRAD PLUS LOANS                                                      10.5%
Interest Rates2

I would like to thank the NCAG for this information.

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