"[A] raft of changes that will take effect Tuesday will make student loans less onerous for many borrowers," USA Today reports. "Here's a look at the changes: Interest rates on unconsolidated student loans issued before July 1, 2006, will drop to 4.21% from 6.62% for the in-school and grace period and from 7.22% for loans already in repayment... The fixed rate for new subsidized Stafford loans for undergrads will drop to 6% from 6.8%. This change will affect subsidized Stafford loans issued after July 1 and will remain in effect for the life of the loan... Students will be permitted to borrow an additional $2,000 in unsubsidized federal student loans each year... Federal loans for parents of college students will become more attractive."

You can read the complete July 1, 2008 USA Today article on-line.

Other Media Coverage

• Chairmen Miller & Kennedy: Beginning Tomorrow, Millions of Students Will Have Access to Cheaper Interest Rates on College Loans
• Interest rates to dip for some student loans (The San Francisco Chronicle)
• A Bit of Rate Relief for Students (Marketplace)