President Obama signs student loan interest bill
President Obama signed the Bipartisan Student Loan Certainty Act amending the Higher Education Act to change the interest rates on all new subsidized, unsubsidized, GradPLUS, and Parent PLUS loans.
The law lowers interest rates for the short term, but over time will subject students and parents to higher interest rates on their student loans.
- The interest rate for subsidized loans and unsubsidized loans to undergraduate students will be the 10-year Treasury rate plus 2.05 percentage points (currently 3.86 percent), capped at 8.25 percent.
- The interest rate for unsubsidized loans to graduate students will be the 10-year Treasury rate plus 3.60 percentage points (presently 5.41 percent), capped at 9.50 percent
- The interest rate for GradPLUS and Parent PLUS loans will be the 10-year rate plus 4.60 percentage points, (presently 6.41 percent) capped at 10.50 percent
The President signaled that the administration will roll out a strategy to tackle the climbing costs of a college education. “The cost of college remains extraordinarily high. It’s out of reach for a lot of folks,” Mr. Obama said, “We’ve got to do something about it.”
See more at: http://askheatherjarvis.com/blog/the-student-loan-interest-rate-lottery-borrowing-costs-are-headed-up