In a new financial aid bill that is expected to pass through congress there are quite a few changes students need to be concerned about. Among other cuts, totaling billions from college financial aid over the next 5 years- is a fixed rate for Stafford Loans.
This fixed rate will be set at 6.8 percent. This is a major ordeal, as loan rates are now variable and change every year. Currently they are linked to the ninety-day treasury bill, which is as low as 4.7 percent.
In the past Stafford Loans interest rates have been as high as 8 percent, however, right now they are much lower than the proposed 6.8 percent lifetime rate.
This bill passed the senate, is expected to pass the house, and the president is expected to sign it into law.
There are several other important parts to the bill that will be dissected soon.
Stay Tuned.
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