In our last post at the beginning of the summer, we wanted to inform you about the looming possibility that fixed interest rates on Subsidized Stafford Loans would double from 3.4% to 6.8% for all new loans.
You may lay your fears to rest for the current year. Congress signed to have the rate remain at 3.4%. All Subsidized Stafford Loans taken out for the 2012-2013 will still have the fixed interest rate of 3.4%.
Congress will need to approve this again next summer in 2013, however, so keep an eye on what their decision is before July 1, 2013 rolls around. If they choose not to extend the low rates, fixed interest rates on July 1, 2013 for Subsidized Stafford Loans will increase from 3.4% to 6.8% on all new loans taken out after that date.
For more information on student loans or general finance, feel free to set up a one-to-one meeting with a Peer Financial Counselor in Carrington Hall, Room 419.