federal student loan consolidation legislation

Current Parliament concerning the future of interest rates on student loans federal

Legislation on interest rates student loan

The House of Representatives will vote on a bill today (January 17, 2007) that produce changes in student lending industry. This bill would reduce the interest rates on new federal loans students from the current 6.8% to 3.4% over five years.

• the rate is 6.12% for loans first disbursed after July 1 2007 and before July 1, 2008;
• The rate will be 5.44% for loans first disbursed after July 1, 2008 and before July 1, 2009;
• rate is 4.76% for loans first grants after July 1, 2009 and before July 1, 2010;
• the rate is 4.08% for loans first disbursed as of the July 1, 2010 and before July 1, 2011, and
• the rate is 3.40% for loans first disbursed after a July 2011 and before January January 2012.
After July 1, 2012, the rate again to 6.8% of this rate reduction is only for loans not yet disbursed, which does not affect interest rates on all loans you already have.

This program is estimated at cost of 7 billion, most of which would be paid by reducing the amount of money lenders loans. The bill should pass the House today easily enough, but has not yet passed the Senate and the President before it becomes law. You can not do throughout intact, but opens the door to lower interest rates. Stay tuned for the latest updates.

About the Author

Federal Education Services is a company that specializes in federal student loan consolidation, Stafford loan origination, PLUS and Graduate PLUS loan origination and as a resource for students with questions regarding educational financing. For any questions regarding this article please contact Federal Education Services. A friendly loan specialist can be reached at (877) 222-4727 or you can find us on the web at www.feded.net.

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