Change in Graduate Student Loans
In the Summer of 2011, Congress eliminated the subsidy component in the Federal Subsidized Stafford loan for graduate students. This elimination for graduate students helps to shore up funding for the Federal Pell Grant program which aids low-income undergraduate students.
What this means to you:
- Graduate students who received Federal Subsidized Stafford loans in the past will now see the interest begin to accrue on any new loans issued after July 1, 2012.
- Federal Subsidized Stafford Loans disbursed prior to July 1, 2012, will retain their interest subsidy. This Act applies only to new loans issued after July 1, 2012.
- The total amount available under the Federal Stafford Loan program still remains at $20,500.
- Undergraduate loans do not change.
For additional information, please read information on the Budget Control Act of 2011 at http://www.cbo.gov/ftpdocs/123xx/doc12357/BudgetControlActAug1.pdf.