impact to our students in regards to the Budget Control Act, beginning July 1,
in-school interest subsidy for graduate and professional students.
The total Stafford loans available for students remains at $20,500, but unlike
now, qualifying students do not pay interest on $8,500 of the total Stafford
loan amount while in school, thus it is subsidized by the government,
students do pay (accrue) interest on the $12,000 while in school.
The change will be they all pay (accrue) interest on the total 20,500 once the
loan is disbursed.
- Direct Loan Repayment Incentives: Repayment incentives were also eliminated in the
Stafford loans, the up-front rebate incentive was equal to 0.5 percent of the
loan amount and applied toward the 1 percent loan origination fee. When/if we
participate in Grad Plus loans in the future; the up-front interest rebate
incentive was 1.5 percent applied toward the 4 percent origination fee for
interest rate reduction of 0.25 will continue to be provided to a borrower who
agrees to automatically debit electronic payments.