Direct Subsidized Loan Interest Rate Extended

The U.S. Department of Education recently announced that a one-year extension of the 3.4 percent interest rate on Direct Subsidized Loans made to undergraduate students was signed into law by President Obama on Friday, July 6.

Any Direct Subsidized Loans for undergraduates disbursed on or after July 1, 2012 and before July 1, 2013 will have an interest rate of 3.4 percent when the student graduates or drops below half-time enrollment. (While enrolled in school, the Subsidized Loans do not accrue any interest.)