July 1st marks the first of a series of cuts in the interest rate for federal student loans. The first decrease will drop rates from 6.8% to 6%. Ultimately, interest rates will be cut to 3.4% by the year 2012.
The average student borrower will save approximately $2,600 over the life of the loan based on the changes that go into effect on July 1, 2008. Other changes to the current system include an increase in Pell Grants and an Income-Based Repayment program. Financial Aid to teachers who commit to high-need subject areas are also eligible for loan forgiveness.
All of these improvements are thanks to the passing of the College Cost Reduction and Access Act which was recently signed into law. This law focuses on making college accessible to all Americans, regardless of their socio-economic background. It is an investment in the future of the country.
1 response so far ↓
1 Christen M // Feb 13, 2009 at 8:53 pm
Is this still accurate. Are there any updates? My interest rates on my student loans are so high that I would have to be a moron to buy a house. Is there any hope in the near future for post-graduate students who haven’t landed the dream job yet? (Just starting a career)
Leave a Comment