For Immediate Release
July 3, 2008
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Contact: Erin Hathaway
(603) 225-6612, ext.346
800-525-2577
mediainquiry@gsmr.org
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Student Loan Interest Rate Decrease Provides Savings for NH Students
Concord, NH - As New Hampshire students and families search for affordable funding options for the upcoming year of college, some relief is on the way. As of July 1st, interest rates on student loans are decreasing and the amount of aid students are eligible for is increasing for the 2008-2009 school year.
Changes to federal loan programs are a result of the College Cost Reduction and Access Act of 2007. Among these changes are annual decreases to the interest rates on Federal Stafford loans and an increase in the amount of aid students are eligible for in both the Federal Stafford program and the PELL Grant program.
Changes include:
- Undergraduate students can now borrow $5,500 freshman year, $6,500 sophomore year and $7,500 for junior and senior year of college. This is a $2,000 increase in the current unsubsidized Stafford loan limits.
- Subsidized Stafford loan interest rates will decrease to 6 percent from 6.8 percent. Over the next three years, the interest rates will continue to decrease annually until reaching 3.4 percent.
- Pell Grant eligibility increases to $4,731 a year for needy students, an increase of over $400 from last year.
“As the cost of education rises it is positive to see some relief for New Hampshire students,” stated René A. Drouin, President and CEO of the NHHEAF Network Organizations. “Education beyond high school is critical in today’s economy and we know that affordability is key. These changes will help.”
What this means for New Hampshire students and families is savings. New Hampshire students graduate with the second highest student loan debt average in the country according to statistics from the College Board. Federal student loans are the most affordable and accessible loan option for students, over alternative options such as private student loans. The availability of more funding allows New Hampshire families to not only borrow less money upfront but to save hundreds of dollars of interest over the payment term of their loan.
The NHHEAF Network Organizations has federal Stafford, Parent PLUS and Graduate PLUS loan options available to students and families nationwide. To learn more about the available loan options visit www.nhstudentloans.org or call 1-800-719-0708.
The NHHEAF Network Organizations are comprised of four 501(c) (3) nonprofit organizations that provide students and families with the resources and funding to pursue higher education aspirations. Funds generated by the Organizations make their charitable mission possible as student loan earnings are reinvested in programs and services that benefit citizens of New Hampshire. For more information, visit www.nhheaf.org.
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