Big changes for federal Stafford Loans
July 1st marked a big change in student lending that can save you money. The federal government announced a reduction in the current subsidized Stafford Loan interest rates. The government dropped rates from 6% down to 5.6% for all subsidized Stafford Loans issued between July 1 and June 30, 2010.
What if I Don't Have a Subsidized Stafford Loan?
Even if you didn't qualify for a subsidized Stafford loan, you can still take advantage of savings because the government has also announced that all Stafford borrowers will see a reduction in upfront borrower fees. As of July 1, the maximum borrower fee that lenders will be allowed to charge on Stafford loans will drop from 2% down to 1.5%.
Let's recap:
- Subsidized Stafford Loan rates for 2010-2011 are reduced to 4.5%
- All Stafford Loans have borrower fees of 1% for 2010-2011
Remember to always get federal loans first and only use private student loans as a final option to close the gap left in your tuition bill. As always, SimpleTuition recommends that you start your research early this year to ensure you have the funds you need to start your semester.
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