DEFICIT REDUCTION ACT

What You Need to Know!

New federal loan changes are effective for the 2006/2007 academic year.

Federal Stafford Loan interest rates will be fixed at 6.8% on loans disbursed between July 1, 2006 and June 30, 2007.

Federal PLUS loan interest rates will be fixed at 8.5% on loans disbursed between July 1, 2006 and June 30, 2007.

After July 1, 2006 students will no longer be eligible for in-school loan consolidation.  Students who currently owe a minimum amount of $ 5,000 in Federal Stafford Loan debt should consider loan consolidation to acquire a weighted average of your current interest rate and prior interest rates of your Federal Stafford Loan.

What Graduate or Professional Students need to know!

1. Graduate or Professional students will be eligible for PLUS loans beginning July 1, 2006.  Students may apply for a PLUS loan up to their cost of attendance minus all other financial aid.

2. Students pay a 3% origination fee on the PLUS loan