New Regulations on Student Loans

• Admin
• July 2, 2014
• Financial Aid & Scholarships
• 544

As the U.S. News has stated (“4 Changes Coming to Student Loans”), a few new rules about U.S. student loans have gone into effect starting from July 1st.

The first change involves interest rates on student loans. If a student has a new loan disbursed on or after July 1st, the interest rate on that loan will be fixed. If the loan already has a fixed rate, the interest rate will not change.

Another change involves the issue of closed schools. When schools close, students usually do not have a lot of options about loans they have taken out for their degree. However, if the student enrolled within a certain time period before a school closed and cannot complete their program at another school, their loans do not need to be repaid. The new regulation increases the enrollment time period of 90 days within a school’s closure to 120 days within the closure.

For students who currently require loans for their education, knowledge about these changes will enable them to update their financial plans for the next school year.