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Author: admin | Category: Auto Car Loan Calculator | Date: 12.05.2016

When Democrats took control of Congress in 2007, they passed the College Cost Reduction and Access Act.
A section of this law (201) cuts the interest rates on one type of loan, undergraduate subsidized loans.
If you took out an undergraduate subsidized loan for the 2011-2012 school year, you benefited greatly by these rate cuts. Remember, these reductions are only for subsidized Stafford loans, where the government pays the interest while you are in school.


A graduate Stafford loan, whether subsidized (now eliminated) or unsubsidized, has a fixed rate of 6.8%.
You can check to see what rate your loans would qualify for using the student loan consolidation calculator. Federal interest rates for college loans have always been something of a political football.
But lowering federal interest rates may make life after college more affordable, but it does not guarantee that students can afford the cost of tuition at the schools they want to attend.


For the 2012-2013 school year these rates have been extended, but after that, they will revert to the old rates (the same as unsubsidized loans- 6.8%) unless a new bill is passed. Use your student loan provider’s online calculators that can give you an accurate picture of your monthly payment and the total amount you’ll pay back based on your borrowing situation.



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