Student Loan Legislation

from the inbox, a link to Cecilia Munoz's post, "A Better Bargain for Students," on the White House blog.  Here is an excerpt:

This afternoon, President Obama made an important step toward that promise by signing into law the bipartisan student loan interest rate compromise, which advances our nation's commitment to students by cutting rates on nearly all new loans this year – saving a typical undergraduate student $1,500 over the life of his or her loans. This legislation allows borrowers to benefit from the low interest rates currently available in the marketplace, guarantees that borrowers are able to lock in these rates over the life of their loans, and protects future borrowers by capping how high rates can rise.

The signing of this legislation is a key victory for students, one in which Members of Congress from both sides of the aisle came together around the important mission of keeping college affordable for American students and their families.

Under the new law, nearly 11 million borrowers will see their interest rates decrease on new loans made after July 1, 2013. About 8.8 million undergraduate borrowers will see their rates on new loans drop from 6.8 to 3.86 percent, and about 1.5 million Graduate Unsubsidized Stafford borrowers will see their rates drop on new loans from 6.8 percent to 5.41 percent. Finally, over 1 million Grad PLUS and Parent PLUS borrowers will see their rates on new loans drop from 7.9 percent to 6.41 percent—the first reduction in years.