Student loan rate cuts start Wednesday
Tue, 30 Jun 2009 20:12:29 GMT —
College students are getting a break in the form reduced interest rates for student loans starting on Wednesday.
U.S. Congressman Henry Cuellar was in the Rio Grande Valley on Tuesday morning where he announced the rate cut.
Starting Wednesday, July 1, interest rates on student college loans will drop from 6 to 5.6 percent.
The reduction in interest rates is part of the College Cost Reduction Act of 2007.
The rates will continue to drop until they reach 3.4 percent in 2011.
In addition, a clause in the law caps borrowers TM monthly loan payments at just 15 percent of their income.