On July 6, 2012, President Obama signed Public Law 112-141 that included a one-year extension of the 3.4 percent interest rate on all undergraduate Subsidized Stafford loans with a first disbursement date between July 1, 2012 and June 30, 2013.
Students borrowing Direct Subsidized Stafford loans processed on or after July 1, 2012 will no longer have a subsidized 6-month grace period. Loans processed after this date will still have a 6-month grace period, however interest will immediately begin accruing on the principle as soon as the student is no longer enrolled or has dropped below half-time enrollment.
Beginning July 1, 2012 the following changes will be made to the William D. Ford Direct Loan Program in accordance with the Budget Control Act of 2011.
Graduate Student Loan Borrowers:
Undergraduate and Graduate Student Loan Borrowers:
For more information on Subsidized versus Unsubsidized Loans, visit: www.direct.ed.gov
Click here to view the Budget Control Act of 2011. See Title V, Sections 502 and 503 for specific references to the Federal Direct Loan Program.
We also recommend that students monitor their Federal loan history online at: www.nslds.ed.gov
Click here for more information on your Capitalization of Interest and your Direct Loan interest payment options .