Saturday, June 17, 2017

The Cost of Borrowing for College Is About to Go Up - HERB WEISBAUM, NBC

Students who need to borrow from the federal government to pay for college this fall will get hit with significantly higher interest rates. And the financial burden on lower-income students could increase even more if Congress approves President Donald Trump's plan to eliminate subsidized student loans. The new interest rates on loans for the upcoming academic year are expected to be: Stafford Loan - undergraduate: 4.45 percent, up from 3.76 percent Stafford Loan - graduate students: 6 percent, up from 5.31 percent Parent PLUS loans: 7 percent, up from 6.3 percent These are fixed rates that apply to new loans made between July 1, 2017 and June 30, 2018. The rates on existing loans will not change. And unfortunately, you cannot take out loans for the new school year at current rates.

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