Wednesday, October 01, 2014

Follow us:
Follow @NY1 on Twitter Follow NY1 News on Facebook Follow NY1 News on Google+ Subscribe to this news feed 

News

Interest Rates Increase for New Federal Student Loans

  • Text size: + -
TWC News: Interest Rates Increase for New Federal Student Loans
Play now

Time Warner Cable video customers:
Sign in with your TWC ID to access our video clips.

  To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.

Then come back here and refresh the page.

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.

10.11.12.247 ClientIP: 54.196.199.117, 72.247.8.133 UserAgent: CCBot/2.0 (http://commoncrawl.org/faq/) Profile: TWCSAMLSP