Interest Rates on Subsidized Stafford Loans to Undergraduate Students

Description:

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.

Creator(s): Smole, David P.
Location(s): United States
Creation Date: May 4, 2012
Partner(s):
UNT Libraries Government Documents Department
Collection(s):
Congressional Research Service Reports
Usage:
Total Uses: 59
Past 30 days: 13
Yesterday: 2
Creator (Author):
Smole, David P.

Specialist in Education Policy

Publisher Info:
Place of Publication: Washington D.C.
Date(s):
  • Creation: May 4, 2012
Coverage:
Place
United States
Description:

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.

Physical Description:

12 pages.

Language(s):
Subject(s):
Partner:
UNT Libraries Government Documents Department
Collection:
Congressional Research Service Reports
Identifier:
Resource Type: Report
Format: Text