LONGVIEW – Despite last-minute attempts from Congress to reach bipartisan agreement, on July 1, the interest rate on new federal subsidized Stafford Loans for undergraduate students doubled…from 3.4% to 6.8%. This increase aligns the interest rate on subsidized Stafford Loans with unsubsidized Stafford Loans. With subsidized Stafford Loans, the federal government pays the interest while the student is in school, during the six-month grace period after graduation, and during any loan deferment periods. With unsubsidized Stafford Loans, the student pays the interest. Eligibility for subsidized Stafford Loans is based on financial need, as determined by the federal government's financial aid application (FAFSA). For more information request, Interest Rate Increases on Some Federal Student Loans by email.
Chris Bryant is an American financial advisor.