Interest Rates on Subsidized Stafford Loans to Undergraduate Students

Smole, David P.

Library of Congress. Congressional Research Service.

关键词: Student aid;    Higher education;    Subsidies;    College costs;    Federal aid to higher education;   

RP-ID  :  R42515
RP-ID  :  R42515_2012May04

美国|英语

来源: UNT Digital Library

【 摘 要 】

Beginning July 1, 2012, Subsidized Stafford Loans will be available exclusively to undergraduate students. The federal government "subsidizes" these loans by relieving the borrower of the requirement to pay the interest that accrues while the borrower is in school and during other authorized periods. In the 112th Congress, proposals have been made to reduce the interest rate applicable to Subsidized Stafford Loans that will be made to undergraduate students during AY2012-2013 from 6.8% to 3.4%. Proposals include the Interest Rate Reduction Act and the Stop the Student Loan Interest Rate Hike Act of 2012. It is estimated that a reduction in the interest rate would benefit approximately 7.4 million students who are likely to borrow Subsidized Stafford Loans during the upcoming award year.