Posted on 05/16/2024 8:53:07 AM PDT by SeekAndFind
Borrowing to pay for college is about to get more expensive: The interest rate on new federal student loans for undergraduates during the upcoming 2024-25 academic year will be the highest in 12 years.
The federal student loan interest rate will be 6.53% for undergraduate students, up from 5.5% for the current year. The interest rate has not been that high on any undergraduate loans since the 2012-13 school year.
Graduate students will see an 8.08% interest rate this coming academic year, up from 7.05%. And PLUS loans, which are available to both parents and graduate students, will come with a 9.08% interest rate, an increase from 8.05%.
The rates for graduate students and parents have not been as high since before July 2006, when the government started setting fixed rates for student loans. Prior to that, most federal student loans had variable rates.
The higher student loan interest rates will make it more costly for borrowers to pay back their debt – and could cause a problem for President Joe Biden who is working to win over as many young voters as he can before the November election.
(Excerpt) Read more at msn.com ...
Imagine that!
The rates are set annually and are based on the 10-year Treasury note auction held every May. The increase isn’t a total surprise since the Federal Reserve has kept the nation’s benchmark interest rate at a 23-year high as it waits for inflation to cool.
The Biden admin has a new student loan repayment plan, known as SAVE (Saving on a Valuable Education), could make it easier for current and future borrowers to pay off their federal student loan debt, despite the interest rate hike.
Launched last year, the income-driven repayment plan can lower monthly bills for enrolled borrowers and reduce the amount they pay back over the lifetime of their loans.
Plus, unpaid interest will not accrue as long as the enrolled borrower makes a full monthly payment. That means that a borrower’s balance won’t increase even if the monthly payment doesn’t cover the monthly interest.
Mine was 9%.
I ABSOLUTELY object to writing off student loans, but I have always thought these should be interest-free.
some of these unis have such high endowments they could run the place on the interest and cap gain and let everyone attend for free.
If they need loans the Uni should do the loans directly to the student for lower interest.
MAKES NO DIFFERENCE!!!!
BIDEN is forgiving loans as fast as they are granted.
ALL of it an exercise in accounting.
at this point, because we’re giving billions to Ukraine and Israel and because we’re giving billions to illegals and giving them FREE college, anyone who has attempted to pay off student loans should have them totally forgiven....ENOUGH.
“Plus, unpaid interest will not accrue as long as the enrolled borrower makes a full monthly payment. That means that a borrower’s balance won’t increase even if the monthly payment doesn’t cover the monthly interest.“
I don’t find that unreasonable.
[[Federal student loan interest rate will rise]]
Bahahahahaha- Interest rates on loans? WHAT loans? Weren’t they all illegally forgiven by obiden?
the interest rate doesn’t matter one whit
if Biden gets away with giving away our tax money by “forgiving” loan repayments
Not for Biden supporting students!
Why interest free? The interest rates are below real inflation which already make them a good deal.
The students are stupid. The loans are for the benefit of the universities.
there is no such thing as interest free
you are just making someone else pay the interest
The Feds have no businees in being in the student loan business. Transfer the loans to a “real bank”...by lottery...and stop this cr**.
Who cares, just wait until the govt pays it off for you.
When US taxpayers (who never went to college!) actually pay the bill, of course the interest rate is going to go up.
I think there is a valid case to be made that federally student loans are in the national interest, so offering them interest-free is good. Students still pay the loan.
Nationalization always works - until it fails.
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