- Allows students to borrow up to $3500 as a freshman and $4500 as a sophomore per academic year
- Loans you are eligible to receive will be listed on your Chattanooga State Tigerweb self-service account
- There is a grace period of 6 months after graduation or dropping below half-time attendance before repayment of the principal of the loan begins.
The Smarter Solutions for Students Act (H.R. 1911) establishes how interest rates will be calculated for federal student loans.
- Calculates subsidized and unsubsidized Stafford loans using a formula based on the 10-year Treasury Note plus 2.05 percent.
- Calculates graduate and parent PLUS loans using a formula based on the 10-year Treasury Note plus 4.5 percent.
- Resets student loan interest rates once a year, allowing rates to move with the free market and ensuring borrowers can take advantage of lower interest rates when available.
- Protects borrowers in high interest rate environments by including a 8.5 percent cap on Stafford Loan interest rates and a 10.5 percent cap on PLUS loans.
- New student loan interest rates starting July 1, 2014:
- 4.66% Direct subsidized and unsubsidized loans for undergraduate students
- 7.21% Direct PLUS Loans (Parents of Dependent Undergraduate Students)
Visit http://edworkforce.house.gov/smartersolutions/default.aspx for details about the bill.