regentrude Posted July 15, 2017 Share Posted July 15, 2017 Maybe you all have been paying better attention to this than I did, but in case anybody did not, I just learned that interest rates for subsidized Stafford loans have increased to 4.45% for the 2017-18 academic year, from 3.76% for 2016-17. https://www.accesslex.org/xblog/2017-2018-interest-rates-announced Quote Link to comment Share on other sites More sharing options...
Guest Posted July 16, 2017 Share Posted July 16, 2017 I'm confused. Do they count each new year as a new loan or is the very first year counted as the loan year with each disbursement adding to the original loan? Quote Link to comment Share on other sites More sharing options...
regentrude Posted July 16, 2017 Author Share Posted July 16, 2017 I'm confused. Do they count each new year as a new loan or is the very first year counted as the loan year with each disbursement adding to the original loan? As far as I understand, this is the interest rate for loans disbursed during this academic year and will remain fixed over the lifetime of the loan. 1 Quote Link to comment Share on other sites More sharing options...
Crimson Wife Posted July 17, 2017 Share Posted July 17, 2017 I thought it was only the interest rate when the student either graduates or drops below a certain number of credits that matters? The interest rate was a lot higher when DH graduated than it was when he entered (~6.8% vs. 3 point something%) I certainly wish that he could've gotten the first year's money at the lower interest rate and only the last year at the higher rate. Quote Link to comment Share on other sites More sharing options...
regentrude Posted July 17, 2017 Author Share Posted July 17, 2017 (edited) I thought it was only the interest rate when the student either graduates or drops below a certain number of credits that matters? The interest rate was a lot higher when DH graduated than it was when he entered (~6.8% vs. 3 point something%) I certainly wish that he could've gotten the first year's money at the lower interest rate and only the last year at the higher rate. Unsubsidized Stafford loans accrue interest immediately. Only the subsidized ones begin charging interest not until graduation/dropping below full time student status. Interest rates are fixed over the lifetime of the loan, but money is loaned each academic year. The current interest rate refers to loans disbursed in the 2017/18 academic year. Loans disbursed in the past academic year have last year's interest rate. ETA: Before 2006, interest rates were variable; it is only since 2007 that they are fixed. Edited July 17, 2017 by regentrude Quote Link to comment Share on other sites More sharing options...
cbollin Posted July 17, 2017 Share Posted July 17, 2017 I just checked my dd's loan info. Interest rate is based on when loan is disbursed and will remain fixed over the lifetime of the loan. My dd's first year loans are one rate. then second year is another.. last year has it's rate.. and coming year is the new rate. She hasn't dropped below full time credits or anything like that. 1 Quote Link to comment Share on other sites More sharing options...
elegantlion Posted July 17, 2017 Share Posted July 17, 2017 I'm confused. Do they count each new year as a new loan or is the very first year counted as the loan year with each disbursement adding to the original loan? Yes, each year is a new loan. Mine are all outlined individually at the loan provider's website. So I have x number of loans that they use for the total. I believe that federal loan rate is released every July, so generally you don't know until you're committed what the rate will be. This year's rate is actually a bit lower than the 2015-16 year, I think. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.