Subsidized Stafford Loans are set to see a decrease in their interest rates on and after July 2010, for the 2010-2011 year. Stafford loans are a type of student financial aid that assists college students in meeting the costs of attending a university and are federally funded.
New laws were recently passed that will change student loans in coming years, making them directly from the Federal Government, which should cut costs, interest rates, and make more money available for things like Pell Grants.
However, current interest rates for Subsidized Stafford Loans are quite low and set to go even lower to 4.5% this summer. Many students, that are able to do so, are waiting to take out their Federal Loans until this time in order to lock in the lower rate.
Interest rates on federal loans and federal student loan consolidation loans are usually low and affordable, but financial aid counselors often tell college students, or college-bound students, to be on the lookout for scholarships and grants.
While a student loan is a helpful way to pay for college, students may find all the funding they need from scholarships and grants, which don’t have to be paid back, and even if they aren’t given a full-ride, other forms of financial aid will cut down the amount one has to borrow.