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Rates on New Student Loans Will Rise on July 1
The New York Times • • business
Key Points:
- Interest rates on new federal student loans for the upcoming school year will increase slightly to 6.52 percent from 6.39 percent, affecting loans made between July 1 this year and June 30 next year.
- These rates are fixed for the life of the loans and do not impact loans taken out before this period.
- A temporary interest rate reduction starting July 1 will only apply to borrowers already in active repayment who enroll in automatic payments by September 30, excluding most new borrowers for the upcoming academic year.
- Students taking out loans after July 1 generally cannot benefit from the discount since they will not yet be in repayment, with limited exceptions for some graduate students who continue payments.
- Parent PLUS loans issued after July 1 are unlikely to qualify for the temporary rate reduction due to timing constraints related to the repayment and enrollment deadlines.
