The cost of college continues to rise.
Federal Student Loan interest rates for the 2017-2018 school year have been determined, and we’re seeing a marked increase in interest rates for both undergraduate and graduate student loans.
Undergraduate Student Loans:
Starting July 1st, interest rates for the Undergraduate Direct Loan program will rise from 3.76% to 4.45%, an increase of 0.69 percentage points, or 18.4%.
Graduate Student Loans:
The Graduate Direct Loan rate will rise from 5.31% to 6.00%, a 13% increase.
PLUS Loans, available to graduate students and parents of undergraduate students, will rise from 6.31% to 7.00%, a 10.9% increase.
What You Need To Know:
Federal Student Loan interest rates change each year on July 1st. The Federal Student Loan interest rate is based on the May 10th auction of U.S. Treasury notes. These interest rates are fixed for the life of the loan, meaning they apply only to loans disbursed from July 1, 2017 – June 30, 2018. If your loan was issued prior to July 1, 2017, these changes will not impact your student loans.
Student loan debt is the second highest consumer debt category in the U.S. … second only to mortgage debt. And for many families, the cost of college is the #1 most traumatizing financial issue they will face in their family’s lifetime.
But you don’t have to face it alone. Help is out there. Email firstname.lastname@example.org to set up a personal consultation and find out if your family is on track.