Congress has voted to change the interest rate on Federal student loans for new loans created on or after July 1, 2013.
The new rates are below.
Subsidized Stafford Loans: 0% while in school; 3.86% fixed
Unsubsidized Stafford Loans: 3.86% for undergraduate students; 5.41% for graduate students
Parent and Graduate PLUS Loans: 6.41%
The origination fee also increased from 1.04% to 1.051% for Stafford Loans; 4% for PLUS loans. Note that interest on subsidized
loans does not accrue until students graduate or fall below half-time enrollment. For the most up-to-date information on
eligibility, visit Federal Student Aid.
In addition, receipt of the subsidy is limited to 150% of the student's published degree program for new borrowers after
July 1, 2013. For example, a student completing a 4-year bachelor's degree program will only be eligible to receive the
subsidized loan for six years at maximum. This rule only applies to new borrowers who receive their first Stafford loan
disbursement on or after July 1, 2013. Students in this category will still qualify for unsubsidized loans up to their
lifetime borrowing aggregate amount, if all
other eligibility requirements are met.
Student Financial Aid
220 North 7th Street
150 Tirey Hall
Indiana State University