The President has just signed a bill affecting your student loan interest rates for this year, 2013-14.
You may have heard in the news about student loan rates increasing this past July 1st – although that increase did not affect you (it was only for undergraduate subsidized loans), the legislation passed to fix that rate increase DOES affect you.
Beginning this year, student loans will be “fixed-variable,” meaning that each year students will receive a new rate, but then the rate is fixed for the life of that loan. The student loan interest rate for new loans each year will be determined by the market and calculated as the 10-year treasury note plus a margin. So your 2013-14 loans will have one fixed rate, your 2014-15 loans will have a different fixed rate, your 2015-16 loans will have a different fixed rate, etc.
For this year, 2013-14, this will mean a lower interest rate than you initially were going to receive. Federal unsubsidized loans will have a fixed interest rate of 5.41% (instead of the previous 6.8%). Federal Graduate PLUS loans will have a fixed interest rate of 6.41% (instead of the previous 7.9%). The fees are unchanged.
Each year, we will email you the new interest rates for the upcoming year’s loans, and will post the rates on our website. Since interest rates are currently very low, your federal loans in future years may have rates higher than this year’s. However, Congress has set a cap on how high the interest rates on student loans can go. The federal unsubsidized loans are capped at 9.5%, and the federal Graduate PLUS loans are capped at 10.5%, so your new loans in future years cannot be higher than those rates. We do not expect rates to increase that dramatically in the next couple of years, but be aware that they may increase.
As always, if you have any questions, please contact your counselor.
Welcome, Class of 2017!
The orientation presentation is available for view or download here.
Like us on Facebook!
We've created a page on Facebook for the UVA School of Medicine Financial Aid Office. While email remains our official mode of communication for required and important information, you can "like" us on Facebook to get occasional updates and reminders about deadlines. We'll also post reminders about upcoming events, like the "Money Talks" seminars, and links to useful resources.
The University no longer mails paper bills. Students will receive an email from Student Accounts with instructions to log in to SIS and view their tuition bill through QuikPay@UVA.