[Defaultprevention] Direct Loan Changes Effective July 1, 2014

[Heid, Mary]

[Ready Set Repay Blast]
July 2, 2014

Direct Loan Changes Effective July 1, 2014

The following Direct Loan changes are effective as of July 1, 2014:

Income Based Repayment (IBR) Plan
For loans disbursed on or after July 1, 2014: if eligible for IBR, payments will be no more than 10% of discretionary income with a maximum repayment period of 20 years. Loans first disbursed prior to July 1, 2014, if eligible, will have a monthly payment no more than 15% of discretionary income with a maximum repayment period of 25 years.

Interest Subsidy
Subsidized loans disbursed on or after July 1, 2014 will have an interest subsidy during the grace period.

New Interest Rates
Interest rates for loans disbursed on or after July 1, 2014 have changed. Click here<http://ifap.ed.gov/eannouncements/051514IntRatesForDLFirstDisbBtwnJuly12014June302015.html> for the Dear Colleague letter outlining the new rates.

________________________________


Mary Heid
Director for Default Prevention, Compliance & Training Services
Oklahoma College Assistance Program (OCAP)
P.O. Box 3000 | Oklahoma City, OK 73101-3000
mheid at ocap.org<mailto:mheid at ocap.org> | www.ReadySetRepay.org <http://www.ReadySetRepay.org>


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For questions or comments, contact OCAP at P.O. Box 3000
Oklahoma City, Oklahoma 73101
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