Your Money Adviser: Student Loan Rates Are Rising. Here’s What You Need to Know. [The New York Times]
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Source: The New York Times
Image Credit Minh Uong/The New York Times By Ann Carrns May 18, 2018 Interest rates in general are rising, and so are the rates on student loans for the coming school year. Interest rates on federal student loans for undergraduates will increase to 5.05 percent from 4.45 percent for the 2018-19 academic year, the federal Department of Education said on Friday. Rates on loans for graduate students will go up to 6.6 percent from 6 percent; and rates on PLUS loans, for parents and graduate students, to 7.6 percent from 7 percent. The federal government sets rates for new student loans each year, under a formula adopted by Congress several years ago. The new rates take effect annually on July 1, and apply to loans taken out for the following academic year. Rates can fall or remain flat; this will be the second consecutive year they have risen. ( Rates are based on the 10-year Treasury note at the May auction, and an additional fixed rate depending on the type
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