Good news for students and potential students! There are new loan rules in effect as of today (July 1, 2008). While it's a confusing system, the deals are better now than those that existed under the previous student loan rules.

Under the College Cost Reduction and Access Act (CCRAA), it really pays to be a freshmen this year or shortly after. That's because the interest rate goes down each year over the next several years. While it's 6% right now, next year it will be 5.6%. By 2010, the rate dips to 4.5% and then to 3.4% in 2011. If Congress doesn't act after 2011, the rate will then double back up!

Debt forgiveness is also a new feature of the CCRAA. Those who choose to go into public service can enjoy full loan forgiveness after making 10 years of monthly payments on their federal loans. For the complete scoop, check out Clark's CCRAA guide. Finally, if you are out of school and want to consolidate your loans, check your options at Ed.gov.