Facts of the Month

Congress Approves Interest Rate Freeze Until July 2013

Have you heard the latest news from Washington D.C.? Congress has approved of the freeze on interest rates for federally-subsidized student loans at 3.4% (for loans disbursed between July 1, 2012 and June 30, 2013) until July, 2013. The measure passed the House by a 373 to 52 vote, and was approved by the Senate by a 74 to 19 vote.

An Additional Change:
  • For Direct Subsidized Loans disbursed between July 1, 2012 and July 1, 2014, the interest rate subsidy has been eliminated for the six-month grace period after graduation.

Publication Date: July 2012