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May 12, 2014

Federal Student Loan Interest Rates Movin’ On Up

And in the “It Could Have Been Worse But It Still Sucks” category, the envelope please…

Interest rates for new federal student loans are going up by 0.8 percent on July 1, 2014 (and are likely to go up again this time next year, and the year after that, and the year after that…).

Under current law, new federal education loan interest rates are determined based on the 10-Year Treasury Yield (a benchmark economic indicator) as measured at auction each May. 

The interest rates you'll get next semester
Subsidized and Unsubsidized Stafford Loans for undergrads will be at 4.66 percent interest (last year they were 3.86 percent).
Unsubsidized Stafford Loans for graduate and professional students will be at 6.21 percent interest (last year they were 5.41 percent).
Grad PLUS and Parent PLUS Loans will be 7.21 percent (last year they were 6.41 percent)

Loans we already have stay at the rates at which we borrowed them (except for old variable rate federal loans from pre-2006 and private variable rate loans).

By Heather | Category: Student Loan Policy, Student Debt  
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