What is the effect of Congress failing to act by July 1, 2013?
A message to the Antioch University Community from the Financial Aid Office
Attention students – over the past several weeks, you may have heard about the debate going on in
Washington DC about student loan interest rates and the fact that those interest rates would rise July 1 if Congress did not act by then. In this very confusing debate on interest rates for student loans, be aware that only a fraction of the student loans received by Antioch University students are affected by this “doubling of interest rates” that went into effect on July 1, 2013.
Which loans are not affected?
Graduate students’ loans are not affected for 2013-14. Interest rates on the Unsubsidized Federal Direct Student Loans remain at 6.8%. Interest rates on Graduate PLUS loans remain at 7.9%.
Which loans are affected?
Undergraduate Subsidized Federal Direct Loans do jump from 3.4% to 6.8%, matching the rate already in effect for unsubsidized loans. These are loans with the first disbursement on or after July 1. The maximum amount of subsidized loan an undergraduate student can have access to in 2013-14 is $5500.
The unsubsidized amount for most loan recipients is $7,000, and interest rates on that portion remain at 6.8%.
What can you do to influence interest rates?
We urge Antioch University students to exercise your political power and rights and contact your Congressional representatives – both in the Senate and the House to come to an agreement that will lower interest rates on all student loans.
Questions? Contact: Susan Howard
Antioch University Director of Financial Aid