Thursday, December 25, 2014

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Interest Rates Increase for New Federal Student Loans

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TWC News: Interest Rates Increase for New Student Loans
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Student loan interest rates go up Tuesday, and while the jump is marginal, it could be a sign of more increases to come.

The changes come from a bipartisan deal brokered by Congress last year to tie student loan interest rates to the overall economy.

Under it, rates on new federal undergraduate Stafford loans go from 3.86 percent to 4.66 percent.

Graduate student loans go up to 6.21 percent, and Plus loans for parents increase to 7.21 percent.

If the economy continues to improve, the rates could increase again next year.

However, the deal in Congress does include caps.

Undergraduate interest rates are not to exceed 8.25 percent. ClientIP:,, UserAgent: CCBot/2.0 ( Profile: TWCSAMLSP