TRENTON, N.J. - Paying for college may not be the most popular aspect of pursuing higher education, but students and parents have something to celebrate. As of July 1st, 2008, Federal Stafford Loans and PLUS Loans have undergone important changes, making them more appealing for borrowers. Specifically, Stafford Loan limits have recently been increased, interest rates for needy students have been reduced, and parental loan repayment terms have become more flexible.
Under the new federal rules, the amount that qualified undergraduate students can borrow has increased by $2,000. Additionally, beginning in the Fall 2008 semester, applicants who are eligible for subsidized Stafford loans will see a reduced fixed interest rate at 6.0%, down from 6.8%. This reduction in interest, along with other adjustments ordered by Congress, will trim down the total cost of repaying the loan in a 10-year period by hundreds of dollars.
Parents also receive a break with new parent loan rules. The Federal PLUS loan, which a parent can take out to cover a child's full cost of attendance (after subtracting other financial aid received), offers the option to defer payments until six months after the student graduates or leaves school. Additionally, the credit requirements for the PLUS loan are less restrictive than in the past.
It is important to remember that any student loans you receive must be paid back and in a timely manner. Also, be sure to understand all of the loan's terms and conditions before you sign for it. Finally, remember to borrow wisely - never borrow more money than you actually need to pay for school, since it will cost you in interest later on. For more information about students loans, please visit www.hesaa.org.
Since 1959, HESAA, a non-profit, state designated Authority, has delivered over $18 billion in financial aid. Each year, over 1 million students receive assistance from outreach programs and aid programs HESAA administers including Tuition Aid Grant, the Part-time TAG for County College Students, NJSTARS and II, the Garden State Scholars programs, the Federal Family Education Loan program, NJCLASS, and NJBEST. For additional information about HESAA please visit our Web site at www.hesaa.org or call our toll-free hotline at 800-792-8670.
Posted 07/16/08 to www.NASFAA.org. Posting of press releases is done as a service to Members and does not imply endorsement or support by NASFAA. NASFAA does not review this information for content or accuracy.
