Starting July 1, several major changes took effect as a result of student loan reform, which was signed into law on March 30. The first is that federal student loans will now officially be made available only through the government via college and university financial aid offices.
A second change is that interest rates on subsidized Stafford loans will drop to 4.5 percent from 5.6 percent, while Parent PLUS and Grad PLUS loans dropped from 8.5 percent to 7.9 percent. Finally, for those who want to consolidate student loans originated before July 1, 2006, the consolidation rate is dropping to 2.47 percent (CBS Money Watch).
