Student Loan Rates Rise Next Week. Don’t Freak Out—Yet
"Interest rates on federal student loans are set to rise—again—this July 1, following a nearly half a percentage point bump on Staffords last year," Time reports.
"But before you cue the outrage, consider this: The hike isn’t likely to increase students’ or parents’ borrowing costs in any drastic way, at least not in the short term. …
Interest rates on undergraduate Stafford loans taken out after July 1 will climb to 4.66% from last year’s 3.86%. That goes for both subsidized and unsubsidized loans.
Loans for graduate students and parents of college students had higher interest rates to begin with, and will rise too. Unsubsidized Stafford loans for graduate students will now cost 6.21%, up from last year’s 5.41%. And rates on direct PLUS loans, offered both to parents of college students and to graduate students, will rise to 7.21% from 6.41%. …
The size of your loan ultimately will determine how much the new rate hike affects you. But experts say that it’s unlikely to have a meaningful impact on most borrowers."
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