Subsidized federal loan rates drop p1 - GI Bill Benefits - Tuition Assistance for the Military - Military Times EDGE

There’s good news for service members and vets who have maxed out their military education benefits. The cost of borrowing from the federal government using subsidized Stafford loans dropped to 5.6 percent in July from the previous rate of 6 percent. This rate, which applies to loans issued between July 1 and next June 30 will remain in effect for the life of the loan. Subsidized Stafford loans are available for borrowers who demonstrate financial need. Rates for new unsubsidized Stafford loans, which are available for all students, will remain at 6.8 percent. All Stafford borrowers will get a break on upfront borrower fees. The maximum fee that lenders will be permitted to charge on Stafford loans dropped from 2 percent to 1.5 percent. Go to www.ed.gov/directloan for more information.