There is mixed news this year for college students receiving federal financial aid: Pell grant caps will increase slightly and student loan interest rates will jump nearly 1%, the largest increase in recent years.
Maximum amount for Federal Pell Grants issued between 1 July 2021 and 1 June 2022 will rise to $ 6,495, up $ 150 over the 2020-2021 rate. Federal Pell Grants are generally only available to undergraduate students and are based on financial need.
Children of veterans who died serving in Iraq or Afghanistan after 9/11 may be eligible for the award. Grant for the provision of services in Iraq and Afghanistan… This is similar to the Pell grant, but unlike the Pell grant, it is not limited to family income.
Federal grants are free money to go to school. Once your school bills have been paid, any remaining balance goes to you. You can usually only get one federal education grant per school year, but there are special programs for low-income families that will allow you to receive more than one grant at a time. Learn more about Federal Student Aid.
Federal student loans
Federal student loan interest rates will also change on July 1, 2021. The interest rate on new student loans issued on or after July 1 will rise from 2.75% to 3.73%. This is a jump in interest rates of almost 1%.
Interest rates on graduate loans will also jump from 4.3% to 5.28%, and PLUS loans (which are usually issued to student parents, graduate students, or professional students) will jump from 5.3% to 6.28%.
These interest rates are only valid for student loans issued on or after July 1, 2021. Loans disbursed before that date will keep the current interest rate no matter how much debt remains.
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