New legislation passed this summer could affect people who rely on student loans.
The Bipartisan Student Loan Certainty Act of 2013 was signed Aug. 9 by President Barack Obama to regulate student loan interest rates at about 3.9 percent for undergraduates.
Interest rates doubled from 3.4 to 6.8 percent when Congress made no action by July 1 to maintain or control interest rates for subsidized student loans.
The new law links interest rates to financial markets, so students who choose to borrow money this year will lock in an interest rate of 3.9 percent. The rate could change depending on the economy.
More than half of UF graduates leave with no student loan debt, according to UF’s facts and rankings webpage. Those who do owe about $17,000 on average. The national average is about $27,000.
“Our students tend to find jobs, which also allows us to have a much lower default rate than the national average,” said Rick Wilder, director of UF Student Financial Affairs.
But debt can cause some students to delay plans for their future.
“I need a new car, but in the back of my mind I know I have thousands of dollars to pay back starting in six months,” said Amy Newton, a 23-year-old UF master’s of public health alumna who graduated last month.
Newton said student borrowers need to be careful.
“Those loans will follow them into their financial future and career,” she said.
A version of this story ran on page 9 on 9/4/2013 under the headline "Loan regulations might lower rates"
