New Student Loan Interest Rates Announced

Abstract:

Yesterday’s U.S. 91-day Treasury Bill auction resulted in an interest rate increase of 8 basis points, which will cause interest rates for Stafford and PLUS loans to increase this July. For Stafford loan disbursed on or after July 1, 1998 and before July 1, 2006, the interest rate for an in-school, grace, or deferment status will change from 6.54 to 6.62 percent. The interest rates on Stafford loans in a repayment status will change from 7.14 to 7.22 percent. The PLUS loan interest rate will increase from 7.94 to 8.02 percent. The 8 basis point increase should be negligible for most borrowers, but industry experts are saying that a consolidation run-off could still occur when borrowers attempt to consolidate before their grace periods expire.

Originally posted in NASFAA’s Today’s News on 5/30/07