Moreover, to make things worse, student borrowing subsidized Stafford loans processed on or after July 1 will no longer receive the six-month grace period in which the government pays the interest. This rate increase comes as part of a broader piece of legislation known as the Budget Control Act of 2011.
Also, a new problem will arise for graduate students enrolling in a program of study on or after July 1, since now they will no longer be eligible for subsidized Stafford loans. They will remain eligible for unsubsidized loans, which already carry an interest rate of 6.8 percent.
