A little good news to report for parents and college students worried about accruing student loan debt. The Federal Direct Subsidized Student Loan Interest rates will remain at 3.4 percent for the 2012-2013 school year. The student loan interest rates were set to double (to 6.8 percent) on July 1 of this year, but Congress approved measures to keep them at 3.4 percent for one more year.
Of course there’s no way to know what will happen next year, but the measure gives families another year of wiggle room.
That’s good news for all students headed back to college in the fall.
To be eligible for a Federal Direct Loan, students must:
- Submit the Free Application for Federal Student Aid (FAFSA)
- Be a U.S. citizen or a permanent resident
- Cannot be in default on a federal loan
- Must be enrolled in school at least half-time
- Maintain satisfactory academic performance
- Males 18-25 years of age must register with Selective Service
- Complete Entrance Loan Counseling online at studentloans.gov
- Complete a Master Promissory Note online at studentloans.gov
- If you are applying for summer aid, you must be enrolled at least half-time
- You can only borrow Federal Direct Subsidized and Unsubsidized loans up to 6 times in an academic year. Be sure you accept the amount needed for the whole year when applying for your loan.