The Budget Control Act of 2011 was signed into law August 2, 2011 and impacted Federal Direct Student Loans by:

• eliminating the interest subsidy for all graduate and professional students for periods of enrollment beginning on or after July 1, 2012 and
• eliminating the interest rebate for loans disbursed on or after July 1, 2012.

Important information to be aware of:

• The Federal Direct Stafford (Subsidized) Loan has been eliminated for graduate and professional students.
• The annual borrowing maximum for the Federal Direct Unsubsidized Stafford Loan remains at $20,500.
• The U.S. Department of Education will continue to pay the in-school interest on any Federal Direct Stafford (Subsidized) Loan that a graduate or professional student borrowed prior to or during the 2011-2012 school year.
• All Federal Direct Loans are assessed a loan fee by the federal government.