That’s right – the Federal Student Loan program interest rates are set for the 2015-2016 academic year – and they are going down!
Based on the sale of 10-Year T-bills on Wednesday, May 13th, the new interest rate for Stafford Loan for your Federal Direct Loan (Stafford) will be fixed at 4.29%, down from 4.66%. A drop of more than a third of a percentage point.
That could mean saving more than $600 in interest payments, based on the average debt of $28,400 that 2013 graduates had reported.
The new interest rates are for loans that originate after July 1, 2015, up to June 30, 2016.
Parent (PLUS) Loan interest has also seen a significant drop from the current 7.21% down to 6.84%.
Graduate Loan rates will be 5.84%, down from 6.21%.
Contact the financial aid office at your student’s college to ask about further details. Don’t forget to ask about the possibility of increasing your college scholarship or college grant money each year, as well!