Under the new rate structure, which still drew opposition from nearly one-third of Senate Democrats when it passed last week, loans to undergraduates and graduate students, along with parents in the PLUS program, would be subject to a fixed rate plus the yield on the 10-year Treasury note.Rates for loans taken out after July 1 of this year would be 3.9 percent for undergraduates, 5.4 percent for graduate students and 6.4 percent for those receiving PLUS loans. The rates are fixed over the life of the loan but would change for new borrowers each year.In a compromise that pleased many Democrats who had initially been wary of using a rate that was subject to inflation and fluctuated with the markets, Congress set a cap on all loans: 8.25 percent for undergraduates, 9.5 for graduate students and 10.5 for PLUS recipients.
Thursday, August 1, 2013
Whoa..."Bipartian" Student Loan Bill Passes!
Described as an "unusual feat" in this Congress, the Bipartisan Student Loan Certainty Act of 2013 has passed both the House and Senate and now seeks Mr. Obama's signature. The law will essentially set up a new rate structure for loans. According to the NYT: