It looks like student borrowers will get some good news and some bad news from Congress this week. First, the good news: it's unlikely that Stafford loan interest rates will increase to 6.8%.
Unfortunately, there are always tradeoffs, and two drawbacks for borrowers will be:
- No more 6 month grace period on interest charges after graduation
- No more subsidized loans for graduate students
Things can always change again in the future, but these conditions should last through July of 2014. The deal is expected to raise revenue (or cost student borrowers) roughly $18 million over the next 10 years. As talk of a Student Loan Crisis increases, we're sure to see even more changes in the coming years.
Further reading:
- Some student loans to become more expensive despite deal
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