Lower student loan rates!

[GeekyPenguin]

Originally Posted by Kevin

"Need Based" -- what exactly does that mean? Does that mean that since my father is in the top 1% of income earners but isn't paying for my school that I won't "need" the rate cut? Or does it just generally meant that all student loans are need-based?

I guess I could go find out on my own.

Dude, you are married AND over 21 AND in grad school - why are you even reporting your dad's income?

[Munchkin03]

The reduction only applies to subsidized Stafford loans. Luckily, I locked in at a lower rate back in June 2005, and after 3 years of on-time payments, I have a reduction of 1%. This would be great, however, if I was still in school.

GP is right. Dude, why are you even reporting your parents' income on the FAFSA? WHY?! If you have to fill out a supplemental report (as I had to for my individual department) I can understand.

[Stef the Pef]

Hey, if my dad had that much cash, I'd take all the "income" he wanted to offer me! Dude's lucky.

Unfortunately, my folks are retired and we're pretty dirt poor right now. Any little bit helps, so if this goes through, I'll be one thankful girl. (I just wish it applied to all my unsubsidized loans I took out pre-parents'-retirement, though! GRR.)

[Drolefille]

Subsidized Stafford Loan

This is a need-based loan.
Interest on the loan is paid by the federal government while you are in school, during your grace period, and during authorized periods of deferment.
During periods of forbearance, you will be responsible for interest that accrues on your subsidized loans.
The interest rate will be fixed at 6.8 percent.
You must be enrolled at least half-time to qualify.
Repayment of principal balance begins six months after you are no longer enrolled on at least a half-time basis.
Unsubsidized Stafford Loan

This is not a need-based loan.
You are responsible for paying the interest on your loan from the date of disbursement.
The interest rate will be fixed at 6.8 percent.
You must be enrolled at least half-time to qualify.
Repayment of principal balance begins six months after you are no longer enrolled on at least a half-time basis.


From my loan entrance counseling.

So technically the unsubsidized are NOT need based. Thus clarifying both the original article and others