<p>Learn something everyday. Thankyou Saintofme. </p>
<p>Link for PLUS, STAFFORDS after July 01, 2006, .pdf, or google PL 107-139 </p>
<p><a href=“GovInfo”>http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=107_cong_public_laws&docid=f:publ139.107.pdf</a></p>
<p>I’m legislatively challenged. 
</p>
<p>Does this bill set the new interest rates for those loans after July 1, 2006, or does it set the ceiling for the interest rates of those loans after July 1, 2006?</p>
<p>You are very welcome. The scary thing to me was that the Financial Aid officers at my DD’s likely college didn’t have a clue about this change when I asked them about it! I think that the 7.9 rate is the actual rate not the ceiling or floor.</p>
<p>As someone wronged back in MY day would say…</p>
<p>“This is BOGUS, man!!”</p>
<p>I read as much as I could of 139.107 before my eyes started to glaze, but it certainly appears that, after 7/1/06:</p>
<p>Staffords will be at 6.8%
PLUS loans will be at 7.9%</p>
<p>…and there is some gobbledygook about consolidations and ‘the lesser of this and 8.25%’ but I DON’T THINK it’s anything good!</p>
<p>Now I’m going to be running the calculator so much my head will hurt, but the first hurdle is this:</p>
<p>Assuming the PLUS rate goes up one-half percent to 4.77% THIS July 1, I would imagine it makes NO sense to borrow 4 years worth of PLUS money just to save, what, 3.12% of interest, because you’ll be paying on the whole magillah 6 months from the day you take out the loan for the entire amount.</p>
<p>Of course, unless you could transport that money in a time machine back to 1980 & put it in the liquid Kemper Money Market fund at an annual rate of 18%!</p>
<p>SCRATCH that last statement…they don’t allow you to borrow more than one semester’s worth at a time for PLUS loans.</p>
<p>But I imagine that it’s probably a good rule of thumb to borrow the max amount allowable before the interest rate goes to the fixed 7.9%.</p>
<p><a href=“http://www.finaid.org/loans/scripts/interest.cgi[/url]”>http://www.finaid.org/loans/scripts/interest.cgi</a></p>
<p>PLUS loan rates for 2005 are expected to be 5.87% [est. as of April, 2005]</p>
<p>You’re right, Saintofme, about the new rates as of 7/06. They will be fixed rates and not variable. The information is summarized at the bottom of the page. Thanks for the “heads up.”</p>
<p>Thks for link</p>
<p>Stafford…6.8%??? :::falls over::: I’ll still have two more years of college at that point. I hope I qualify for subsidized each year!</p>
<p>Glad to be of assistance!</p>
<p>There is still some hope that when Congress reauthorizes the Higher Education Act that some changes to not only the Stafford and PLUS loan rates for 2006 as well as the amounts that can be borrowed will be changed. If you are concerned about the higher 2006 rates talk to your congressional representative about it!</p>