Stafford Student Loan Rates Held

July 4th, 2012 by Jennifer Frankel

What a difference a week makes in the world of financial aid. After all, at this point a week ago, there was every indication that federal student loan interest rates – which had been set to double on July 1st due – would do exactly that. Although both US President Obama and Mitt Romney, his Republican challenger – not mention quite a few members of Congress besides – voiced support for measures that would prevent this automatic increase of interest rates.

With such broad support, in and of itself, there was not enough to reconcile differences between the two parties on how to pay for the bill or, ultimately, to bring the matter to a vote. With the issue of funding unresolved, as Congress approached the weekend (and its weeklong recess to commemorate the US’s Independence Day), the general consensus at the Capitol was that, come the new month, the interest rate on federally backed student loans would jump from 3.4% to 6.8%. While this measure only affects federal loans – and not private international student loans – this would indeed affect those students who plan to study abroad with federally-backed student loans.

In the end, though, what a difference a week makes. In a rare flurry of bipartisanship in the United States, an 11th hour compromise was reached. The leaders of the two major parties in the Senate found common ground on how to pay for the nearly $6 billion cost of the measure on Tuesday and it was this compromise measure that passed the House 373 to 52 Friday and, later the same day, the Senate itself 74 to 19. The US President, who actively called for the legislation, signed it into law on Friday. In so doing, the change is estimated to help more than 7 million students who currently receive Stafford loans by saving them an average of $1,000 each on their loans.

2 Comments

  1. wilson nsong says:

    how can a student from Africa like me who wants to study in America afford to pay his university fees when he has no finance is there no international aid or even a loan

  2. Bryanna Lindblom says:

    Hi Wilson,

    Thank you for your comment. I apologize you are unable to receive a loan. I would recommend also checking out our scholarships database since scholarships are a great way to help fund your studies. I hope you find the aid you are looking for.

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