Attention students! Important information regarding your student loans! It has been all over the news how interest rates doubled this past July 1st. from 3.4% to 6.8%. Now there is some good news in the works...
A bill has been passed by the Senate, which would be retroactively effective July 1, 2013, establishing student loan interest rates equal to the 10-year Treasury bill rate plus 2.05% for subsidized and unsubsidized loans and 4.6% for PLUS loans. The resulting interest rates for loans taken out this year, after July 1, 2013, would be 3.86% percent for subsidized and unsubsidized loans for undergraduate students and 6.41% on PLUS loans for parents and graduate students. Additionally, this bill imposes a cap to ensure interest rates never exceed 8.25% for undergraduate students and 10.5% for PLUS borrowers. Loans would be “variable-fixed,” meaning students would receive a new rate with each new loan, but then that rate would be fixed for the life of the loan. Students with outstanding loans will keep the same interest rates; only loans taken out after July 1, 2013 will take on the new rates.
The bill will still undergo congressional vote but is expected to pass. As we know how important these issues are for our students, there will be more updates from Berkeley College to follow!
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