Fall 2007

New Law to Reduce Student Loan Costs

On September 27, President Bush signed a new law intended to make a college education more affordable for low- and middle-income families by making changes in federal student loan programs.

One provision of the College Cost Reduction and Access Act would gradually cut in half the interest rates on subsidized Stafford loans during the next five years. Another new program, to start in 2009, will give eligible borrowers (based on their income or a financial hardship) more flexibility when making loan repayments.

Look for details in the coming months at www.students.gov, a U.S. government Web site for college students and their families.