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.
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.
This newsletter edition kicks off the 2016-17 academic year, featuring information about when you will receive your aid, how to sign up for the Michigan App, working on campus, and other key items to help you navigate your financial aid. Read more in the full newsletter.
Employment during college gives students money for expenses, exposes them to mentor-type relationships and opens opportunities in professional fields. And working can also help you avoid additional borrowing during your time at U-M. Be sure to check out job postings on the U-M Student Employment website this Fall.