April 19, 2024

Student Loan Update

Senators Reach a Tentative Deal to Lower Interest Rates Low Today a bi-partisan group of Senators reached a deal that would lower the interest rates on college loans, change how the loan rate is determined, and introduce a cap on further increases. On July 1st the interest rate on subsidized Stafford loans doubled from 3.4% to 6.8%, months after unsubsidized Stafford loans had also risen to 6.8% (see our previous update to learn more about the different types of loans). The agreement, … [Read more...]

College Loans and Congress: Why you should care

On July 1st, the interest rate on subsidized Stafford loans doubled, from 3.4% to 6.8%. Without quick corrective action from Congress, this will significantly raise the interest rate on loans for as many as five million college students. But what are Stafford Loans? And why should clinicians care? What are Stafford Loans? Stafford loans are a critical part of the financial aid offered by the federal government to college students. There are two kinds of Stafford loans: Subsidized … [Read more...]