• Loan Changes Starting Next Summer, July 1, 2012.

    In August 2011, Congress and President Obama signed the Budget Control Act of 2011 that will impact the federal student loan programs beginning July 1, 2012.

    The new law eliminates Subsidized Stafford Loans for graduate and professional students. The change will result in graduate and professional students accruing interest on the entire amount of their Stafford Loans beginning at the time of disbursement. The law will not affect the amount of funding available, just the cost. Please note that loan terms and interest subsidy from previously borrowed student loans will not change.

    The interest rate on Subsidized Stafford loans available to undergraduate students for the 2012-2013 academic year will be a fixed rate of 3.4%. Unsubsidized Stafford loans will have a 6.8% fixed interest rate, regardless of student type. The interest rate on all PLUS loans for the 2012-2013 academic year will be a fixed rate of 7.9%.

    In addition, all students will lose the origination fee rebate on Direct Stafford and PLUS Loans disbursed after July 1, 2012. Borrowers will be charged the full 1% origination fee on the Direct Stafford Loans and the full 4% on PLUS loans.

    The 0.25% interest rate reduction for borrowers who agree to make automatic electronic loan payments will continue.

    We will continue to update this page as more information becomes available. If you have any questions, please contact the Office of Financial Aid at 651-523-3000 or finaid@hamline.edu