Weekly Wrap Up: Changes to Federal Student Loan Program

July 2, 2010 | posted by Jeff Sheely.

Are you ready for some grilling and fireworks? The 4th of July is here! This week’s wrap-up will be short and sweet, as you’re hopefully already enjoying your holiday weekend!

Rates Cut on Subsidized Stafford Loans

As of yesterday, July 1st, the Department of Education dropped the interest rate on Subsidized Stafford Loans for Undergraduates down to 4.5%, and the Origination Fee on all Stafford Loans has now dropped to zero. This is great news for borrowers of these low-cost fixed-interest rate loans, and you should always take advantage of your full Stafford Loan eligibility before taking out a private student loan.

Additionally, the Federal Family Education Loan Program (FFELP) was officially shut down yesterday, leaving the Federal Direct Student Loan Program, administered by the Department of Education, as the only way to get your Federal student loans (Stafford, PLUS and GradPLUS loans). Your school will direct you to the DoE’s Direct Loan website for these loans if you need them to help finance your education.

Join us on Twitter and Facebook

Our communities on Twitter (@loanmarketplace) and Facebook (facebook.com/privatestudentloans) are growing rapidly! We encourage you to follow/like us to get great tips about how to maximize your financial aid and what to consider about when choosing a student loan. Additionally, we will be posting great opportunities for you to participate in our contests and potentially win prizes and money for school!

Tweets of the Week

Each week we will post the most interesting and thought-provoking Tweets that come across our @loanmarketplace Twitter account over the past seven days. Here are this week’s best thoughts in 140 characters or less:

@CollegeChat: Forbes: 21 Tips from College Admissions Experts http://ht.ly/25Nxh Hint> Start in your own backyard>Not Guatamala
@CampusCommons: Schools plan to collect students’ saliva and analyze their DNA. Is that a good idea? http://cot.ag/aCxZqc
@USNewsEducation: Starting July 1, colleges have to tell students how much textbooks for each class will cost when they register. http://ow.ly/26i8L

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Thanks for reading, and be sure to check back next week for the launch of our financial literacy contests and your chance to win money for your education!

Written by Jeff Sheely

Jeff Sheely is the Director of Marketing and Blog Editor for the Student Loan Marketplace. He can be reached at jsheely at overturecorp dot com or on Twitter at @overture_jeff.

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http://topsy.com/www.overturemarketplace.com/weekly-wrap-up-changes-to-federal-student-loan-program?utm_source=pingback&utm_campaign=L2 Tweets that mention Weekly Wrap Up: Changes to Federal Student Loan Program | Overture Marketplace — Topsy.com

[...] This post was mentioned on Twitter by Jeff, Jeff. Jeff said: Weekly Wrap Up: Changes to the Federal Loan Program, including cheaper Stafford Loans! http://ow.ly/26okj #studentloans [...]
http://pathwaypr.com/ Theresa Smith

Nice wrap up! Good idea.

Theresa Smith
twitter.com/collegechat
http://www.overturemarketplace.com/ Jeff Sheely

Thanks, Theresa. And thank you for the great Tweets – keep them coming!