College students in need of loans are getting some relief on interest rates.
The Bipartisan Student Loan Certainty Act, a bill introduced by U.S. Senators Richard Burr (R-NC), Joe Manchin (D-WV), Angus King (I-ME), Tom Coburn (R-OK), Tom Carper (D-DE), Tom Harkin (D-IA), Lamar Alexander (R-TN), and Dick Durbin (D-IL), was signed into law by President Barack Obama.
This bill would lower interest rates for 100% of borrowers who have taken out, or will take out, a new federal student loan after July 1, 2013.
“I am pleased to see this important legislation signed into law. 100% of students and borrowers are winning today,” Senator Burr said in a release. “This bill ensures that student loan interest rates never become unaffordable for students, especially the poorest, who are seeking to improve their lives through higher education.”
Interest rates for loans taken out this year, after July 1, 2013, would be 3.86% for subsidized and unsubsidized loans for undergraduate students, 5.41% on unsubsidized loans for graduate students, and 6.41% on PLUS loans for parents and graduate students.
Additionally, this bill imposes a cap to ensure interest rates never exceed 8.25% for undergraduate students, 9.5% for graduate students, 10.5% for PLUS borrowers.
“That’s a great incentive,” said Mary Johnson of State Road who travels to Winston-Salem for college. “Now all they have to do is make sure that student tuition rates don’t escalate.”
Reach Anthony Gonzalez at 835-1513 or email at email@example.com