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about Federal Student Loans Rates: Soon To Increase?
Initially, there's nothing you can do
about federal student loan rates because Congress sets the rates.
Not exact matches
Variable
rates will fluctuate with the life of the
loan and variable
rates are currently at historic lows (2 percent range)-- meaning right now they are below
federal rates (for more on this topic, see «What every borrower should know
about variable -
rate student loans «-RRB-.
But why do I have such a low interest
rate on my
student loans while my ex, who consolidated his
federal loans eight years after I did, pays an interest
rate of
about 5 %?
There are two caveats
about rates on government
student loans to keep in mind: First, the formula mandated by the Higher Education Act imposes an 8.25 percent cap for
federal direct
loans to undergraduates, and 9.5 percent for direct
loans to grad
student loans.
But
student loans —
loans included in your financial aid package and guaranteed by the
federal government at a low interest
rate — are one thing;
loans for, well, just
about anything else are a completely different matter.
There are two caveats
about rates on government
student loans to keep in mind: First, the formula mandated by the Higher Education Act imposes an 8.25 percent cap for
federal direct
loans to undergraduates, and 9.5 percent for direct
loans to grad
student loans.
They keep calling me
about federal and private
student loan consolidation and reduced
rates.
Despite community college having some the lowest tuition
rates in the United States, many potential
students still inquired
about Federal loans or other forms of financial assistance.
The
Federal Reserve raised interest
rates last month and it's starting to increase the
rates borrowers pay on certain
loans, including
student loans.While borrowers in a fixed
rate student loan don't have to worry
about the cost of borrowing getting more expensive, those with a variable
rate loan do.
The default
rate on
federal student loans has risen by
about 5 percent in the past year and 500,000 more borrowers have slipped into default, according to new statistics from the Department of Education (DOE).
Depending on
loan type and disbursement date, your
federal student loan rate could range from
about 3 % to 8 %.