stafford unsubsidized student loan

Federal loan rates face changes

After Saturday, college students at OSU and across the country will no longer be able to secure a federal loan at the current interest rates. Rates on the Stafford and Parent PLUS loans are set to increase by 2 percent, with the rates on Stafford subsidized and unsubsidized loans increasing from a variable of 4.7 percent to a fixed rate of 6.8 percent, and the Parent PLUS loans increasing from a variable rate of 6.1 percent to a fixed 8.25 percent. These loans can be bundled into one consolidation loan and secured at a lower fixed interest rate of 4.7 percent. In order to minimize the number of students repaying loans at higher interest rates, the federal government is allowing students to consolidate their federal loans while they are still in school. Students who are currently enrolled at any accredited institution have the option of applying for a Direct Consolidation Loan from the U.S.

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Priceless education

College students who fail to consolidate their loans by Saturday have an expensive surprise waiting for them.The Higher Education Reconciliation Act of 2005, which President Bush signed into law along with the Deficit Reduction Act on Feb. 8, 2006, will fix Stafford student loan interest rates at 6.8 percent beginning July 1.“Over the past two years rates have started to go up, but with this bill they actually may take a sharp turn up, as they go from a relatively low interest rate in the four percent range up to a 6.8 percent repayment rate," said Evan Icolari, associate director of financial aid at CU.

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