As of July 1st the student loan changes stipulated by The Health Care and Education Reconciliation Act of 2010 went into effect. The Health Care and Education Reconciliation Act of 2010 will introduce various changes to the federal student loan program, including no longer allowing private lenders to offer federal student loans, some changes to The Income Based Repayment Program, and changes in federal student loan interest rates.
In this post we are going to highlight some of the changes that have been made to the interest rates on federal student loans, including the Parent Plus loans and subsidized Stafford loans.
One of the changes stipulated by The Health Care and Education Reconciliation Act of 2010 is that all Parent Plus loans are made under the Direct Loan Program. This will place a fixed interest rate of 7.9% on all new Parent Plus Loans.
For new federal subsidized Stafford loans a fixed interest rate of 4.5% will now be applied, a drop from the previous 5.6%.
The new federal student loan interest rates are good news for those who borrow and qualify for these types of federal student loans. To learn more about federal student loans, you can visit our Federal Student Loans section. To apply for federal student loans, visit www.fafsa.gov to file a Free Application for Federal Student Aid.
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