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I heard that there will be a new legislation on June or July of this year to dramatically raise the rates on all non-consolidated student loans? Is that correct? If so, can you elaborate more on this legislation?

I remember the story from when the legislation passed the Senate, but I don't know for sure if it has passed through the house and been signed.

The main change in loans would be to make the interest rate fixed instead of variable. Currently, the rate changes every July. Under the new legislation, the rate of Stafford loans would always be 6.8% and PLUS loans would always be 8.5%. Although this is higher then loans have been for a while, in theory, the fixed rates would have the benefit of never rising higher than they already are. For most people however, I would suspect that they will end up having to pay more for their student loans.
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