The 2019-2020 academic year marks the first time in three years the rates on federal loans are set to decrease.
The interest rate on new federal student loans is set to drop for the 2019-2020 academic year. Students taking out undergraduate loans will pay an interest rate of 4.529%, according to estimates from Mark Kantrowitz, the publisher of Savingforcollege.com. That’s down from 5.05% for the 2018-2019 academic year.
Interest rates on direct unsubsidized loans for graduate students are set to drop to 6.079% from 6.6% last year. Rates on PLUS loans, which graduate students can use to pay for their education and which parents can use to pay for their children’s education, will drop to 7.079% from 7.6%.Private loan interest rates will likely remain unchanged. Typically, private lenders tie their student loan interest rates to the London Inter-bank Offered Rate, or LIBOR.
The interest rates set this year only apply to new federal student loans and are fixed for the lifetime of the loan. Borrowers who already have federal student loans won’t see their interest rates change. The Fed raised rates four times last year and signaled it would continue that pattern, but then essentially took a U-turn in policy and has left interest rates unchanged over the past several months. That may in part explain why the outcome of the auction is lower than last year.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Fed's Clarida says economy is 'in a very good place' and backs 'patient' approach to ratesFederal Reserve Vice Chairman Richard Clarida said Friday the U.S. economy is strong and interest rate policy is an appropriate place to support growth.
Leer más »
The White House wants the Fed to cut rates. Wall Street says it’s a terrible idea.Top White House brass have recently called for the Fed to cut interest rates. Wall Street doesn't think that's a good idea.
Leer más »
After eating raw rodent’s kidney for 'good health,' couple dies of bubonic plague, sparks quarantineA Mongolian couple died from the bubonic plague after eating raw marmot meat, sparking a quarantine that trapped tourists for days, officials said.
Leer más »
Is this economy too good to be true?Everything is firing for an economy and jobs market that continue to defy expectations as the unemployment rate falls to a low not seen in half a century.
Leer más »
Perspective | How good is Nancy Pelosi’s threat assessment?A lot of things worry me about Trump. Him contesting a 2020 election loss ain't one of them.
Leer más »
Perspective | Trump just gave the House a very good reason to look at his tax returnsWhen the man on top boasts that taxpaying is beneath him, he threatens the whole system.
Leer más »
U.S. intelligence on Venezuela 'very good,' acting defense chief saysActing U.S. Defense Secretary Patrick Shanahan dismissed concerns about a potent...
Leer más »