Federal student loans are about to get more expensive

Personal Finance


Kantrowitz was able to estimate the new rates based on the 10-year Treasury Note auction on May 9.

By his calculations, the interest rate on new undergraduate Stafford loans will rise to 5.045 percent for the 2018-2019 academic year, up from 4.45 percent last year. This will increase monthly loan payments on a 10-year repayment term to $106.29 from $103.40 for every $10,000 in debt borrowed that academic year.

(Keep in mind that undergrads who are dependent students have annual loan limits ranging from $5,500 to $7,500, lessening that repayment impact.)

For graduate students, Kantrowitz projects that Stafford loans will come with a 6.595 percent interest rate, compared with 6 percent now. This would push up monthly loan payments on a 10-year repayment term to $114.03 from $111.02 per $10,000 in debt borrowed for the 2018-19 academic year.

He expects Plus loans for graduate students and parents will have a 7.595 percent interest rate, an increase from 7 percent. As a result, monthly loan payments on a 10-year repayment term will rise to $119.20 from $116.11 for each $10,000 in debt borrowed that academic year.



Source link

Products You May Like

Articles You May Like

Investors have placed $1 billion in cryptocurrency offerings rampant with red flags for fraud: Report
Netflix turning Michael Lewis ‘Flash Boys’ into a movie: report
25 firms with the most entry-level job applications from college grads
David Tepper gets US approval to take activist stance on Allergan
The real reason so many people are working ‘side hustles’

Leave a Reply

Your email address will not be published. Required fields are marked *