Interest Rates on New Student Loans Expected to Drop

Bloomberg is reporting that the amount you pay on new federal student loans is going to drop by half a percentage point for the upcoming academic year when they are reset in July 2015.
According to Bloomberg:

The expected reset would mean a college student with the average $28,000 in federal loans could save about $800 over 10 years in the most popular loan program for undergraduates, called the Stafford, assuming rates stay constant, according to a government financial-aid calculator. Currently, borrowers pay 4.66 percent annually.

Unfortunately, the drop in interest rates applies to only new federal student loans, not those already in the system. In addition, it won’t do affect private student loans, which typically carry higher interest rates and more onerous payment terms.
Still, any news is good news for college students who need to take our federal student loans. With the rapid rise in educational costs every penny counts.

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