As of October 1, 2007, the land of federal student loan legislation is changing quite a bit.  What goes on behind the scenes is a bit complicated, but I wanted to report on the feature that will affect you the most.   Essentially, here’s the deal:

Lenders can no longer afford to offer Borrower Benefits

What does this mean?  Basically, the Federal government has made student loans less profitable, and lenders simply can’t provide those borrower benefits anymore and stay in business.  So they’re cutting the benefits.

What kind of benefits are in jeopardy?  Things like:

• Cash back at signing
• Lower interest rate for getting your payments direct debited
• lower interest rates for a set number of on-time payments.

What does this mean for you?  As of October 1, you’ll likely have to pay more on your loans than you did before.