A Borrower's Guide to July 1, 2008
The first of July is an important date for federal student loans: it's when interest rates and other terms change each year. Starting July 1, 2008, in addition to a drop in costs for many federal loans, thousands of borrowers in public service jobs can take a major step toward student loan forgiveness. Starting July 1, 2008, borrowers can:
- Consolidate to lock in lower interest rates for variable-rate Stafford loans
- Reconsolidate FFEL loans into the Direct Loan Program to become eligible for Public Service Loan Forgiveness
- Get $2,000 more in unsubsidized Stafford loans to undergraduates each year
- Enjoy lower interest rates on new subsidized Stafford loans to undergraduates, and lower origination fees on all Stafford loans.
Our new fact sheet tells college students, their parents, and people already repaying their student loans what they need to know about these and other important changes.
New Downloadable IBRinfo Brochure
We've produced an introductory brochure about Income-Based Repayment and Public Service Loan Forgiveness that you can share with your colleagues, students, employees, or anyone else who might be interested.
- You can download the full color, double-sided, legal-size brochure and distribute copies yourself; or
- You can email us at firstname.lastname@example.org, and-while supplies last-we will send up to 100 copies to your school or office free of charge. (If you need more than 100 copies, let us know and we will try to accommodate.)
Time to Reexamine Institutional Cooperation on Financial Aid
Colleges could free up more funding for need-based financial aid if they could legally work together to curb financial aid bidding wars for high-achieving students. Colleges spent at least $3 billion dollars on "merit aid" in excess of students' calculated need in 2005-06, even as many students' financial need was not fully met. These are the main findings of a new white paper from the Institute for College Access & Success, the Project on Student Debt's parent organization. The paper includes an opinion from a leading antitrust law firm that reviews the current legal environment and suggests ways of allowing more cooperation to benefit needy students.
Read an article about this issue from Inside Higher Ed.