June 22, 2018
Posted by Mike DiBacco

Each spring, interest rates on federal student loans are reset for new loans. For the 2018-2019 academic year, rates are set to increase by more than half a percentage point for new loans made on or after July 1, 2018.

 

  • Direct Stafford Loans for Undergraduates (subsidized or unsubsidized) — 5.045% (4.45% for 2017-2018)
  • Direct Stafford Loans for Graduate Students (unsubsidized only) — 6.595% (6% for 2017-2018)
  • Direct PLUS Loans for Parents and Graduate Students — 7.595% (7% for 2017-2018)

 

With subsidized loans (based on financial need), the federal government (not the borrower) pays the interest that accrues while the student is in school, during the six-month grace period after graduation, and during any loan deferment periods.

LinkedIn

Related

Basics of Medicare & Social Security 5 Mental Health Employee Benefits Trends for 2023