<p>It just affects federal loans. The current proposal - and it is still just a proposal - would affect undergraduate sub, undergraduate and graduate unsub, Grad PLUS, and Parent PLUS interest rates. While all would be reduced in the short term, each year would have a new fixed rate that will be tied to 10 year T-bill rates + 2.05%. While this sounds good today, the cap is quite high … 8.25% sub/unsub, 9.5% Grad PLUS, and 10.5% Parent PLUS. That is really high!!</p>