Recent changes to the federal Stafford and PLUS loans are giving parents and students some extra breathing room. Since July 1, Stafford Loan limits have recently been increased by $2,”000 and the interest rates reduced from 6.8 percent to 6 percent.##M:[more]##
Parents also will receive a break with new parent loan rules. The PLUS Loan, which covers college costs not met by other forms of aid, now allows parents to defer payments until six months after the student graduates or leaves school. Credit requirements to obtain a PLUS loan also are less restrictive than in the past.
The Higher Education Student Assistance Authority advises borrowers to understand all of any loan’s terms and conditions before signing up for it. HESAA also reminds parents and students to borrow wisely — never borrow more money than you actually need to pay for school, since it will cost you in interest later on.
For more information about students loans, visit www.hesaa.org, or call 800-792-8670.
