Student loan rate hike: What you need to know

25 Apr

On July 1, the interest rates on student loans subsidized will double to 6.8%.

More than 7 million undergraduates have subsidized student loans, which means the federal government absorbs some of the interest rate for lower- and middle-income families based on financial need.

Subsidized student loan interest rates used to be 6.8%. But when Democrats took over the House in 2007, they passed phased-in cheaper rates for subsidized student loans. The rates fell to the current low of 3.4% for subsidized Stafford loans this past school year. The rates are scheduled to revert back to 6.8% for the 2012-2013 school year.

http://money.cnn.com/2012/04/24/pf/college/student_loans/index.htm?hpt=hp_t3

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