The federal government annually evaluates the rates for federal loans. Despite this year's dismal economy, the government has cut interest rates and fees for federal loans, putting more money back into the pockets of student borrowers. New rulings for specific loans and grants include the following:
Stafford Loans (subsidized):
New loans (the first pay out between July 1, 2008 and June 30, 2009) are offered with 6.0% interest.
Pre-exisiting Stafford loans taken out prior to July 1, 2006 and not yet entered into a loan consolidation program are offered a 4.1% interest rate, 3 points lower than its original 7.22% interest rate.
Stafford Loans (unsubsidized):
The maximum amount that an undergraduate can borrow in any one year is now $2,000.
Stafford Loans (both):
Total maxmimum loan limits for both unsubsidized and subsidized Stafford loans is $31,000 for students who claim dependent on a parent or guardian's tax return. For independent students, the loan amount has increased to $57,000.
TEACH Program:
The 2008-2009 Teacher Education Assistance for College and Higher Education program offers $4,000 to eligible students who teach
after graduation in schools serving low-income students.
Loan Forgiveness:
For
college graduates entering the public service industry, the government
has instituted a new loan forgiveness plan. Employment in this industry must be by one of the following: federal, state, local, or tribal government; the
military; the public school system; or non-for-profit organizations.
Find out more about student loans!