Are you a new federal Direct Loan borrower since July 2013? You are subject to a new federal regulation that limits your loan subsidy to 150 percent of your degree program. If you are in a four-year program, for example, and have attended for six years, you will no longer received subsidized loans and will be responsible for interest on your loans.
Federal student loan interest rates are scheduled to go down effective with loans disbursed on or after July 1, 2016. The rates on undergraduate Direct Loans will drop from 4.29 percent to 3.76 percent for the 2016-17 academic year. Graduate Direct Loan rates will be 5.31, lower than the current rate of 5.84 percent. The rate on PLUS loans, both parent loans for dependent undergraduates and those for graduate borrowers, will drop from 6.84 to 6.31 percent.