If I am a new student applying for a loan, do I have a to worry about the July 1 interest rate increase?

Question

I have never applied for a loan and I am going to be starting school soon. Do I have to hurry and apply for my loan before July 1 in order to get the better interest rate that I've been hearing about on the news?

Answer 1

It's not worth worrying about. Unfortunately, this 6.8% Stafford interest rate will apply to you and all students beginning school after July 1st. Applying sooner won't matter because the rate applies to all Stafford Loans "first disbursed after July 1st" and your school cannot legally disburse your loan until a few days before classes start. So unless your classes are beginning before July 1, there is no way to obtain the lower rate that students got last year.