Federal Direct Stafford Subsidized Loan Interest Rate Set to Double starting July 1, 2013
June 26, 2013
Congress continues to debate the issue surrounding the impending changes to the Federal Direct Stafford Subsidized Loan interest rate which prior to July 1, 2013 was set at 3.4%. This widely debated issue continues to raise questions as to what the future of the subsidized loan interest rate will be. Despite the July 1, 2013 deadline, Congress has not passed any new legislation to preserve the current subsidized interest rate of 3.4%.
Stafford Subsidized loans first disbursed on or after July 1, 2013, through June 30, 2014 will reflect a change in the interest rate from 3.4% to 6.8% unless Congress acts. Please visit our website for more information on student loan interest rates.
*Please note, this change will not affect loans first disbursed on or after July 1, 2012,through June 30, 2013. Nor will it affect Unsubsidized Stafford or Direct PLUS loans.