Change in College Cost Reduction and Access Act
The cost of paying for college has always been an obstacle for many American families with the rising cost of tuition, boarding/expenses, and annoying expenses like having to go to “Bed, Bath, and Beyond” to buy new sheets for your dorm room.
Well, the original College Cost Reduction and Access Act was signed into law in 2007 and there have been notable adjustments to the original law. They include:
Interest Rate Reduction on subsidized Stafford Loans for Undergrad students in half according to the following schedule
-6.8% for loans first disbursed July 1, 2006 to July 1, 2008
- 6% for loans first disbursed July 1, 2008 to July 1, 2009
- 5.6% for loans first disbursed July 1, 2009 to July 1, 2010
- 4.5% for loans first disbursed July 1, 2010 to July 1, 2011
- 3.4% for loans first disbursed July 1, 2011 to July 1, 2012
Student Loan Deferment for Certain Armed Force Members
- Eligibility for this deferment is limited to members serving on active duty or performing qualified National Guard duty during war and a national emergency
- Income Based Repayment is a new repayment plan for the major types of federal loans made to students. Your required monthly payment is capped at an amount that is intended to be affordable based on your income and family size.
