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Student Loan Interest Rates Reduced
by Chris Malone,posted Aug 1 2013 6:45AM
Congress agreed to lower interest rates for student loans and President Obama is expected to sign today or tomorrow. Under the new plan, Undergraduates this fall would borrow at a 3.9 percent interest rate for subsidized and unsubsidized loans. Graduate students would have access to loans at 5.4 percent, and parents would borrow at 6.4 percent. The rates would be locked in for that year's loan, but each year's loan could be more expensive than the last. Rates would rise as the economy picks up and it becomes more expensive for the government to borrow money.